INSPIRING & UNIFYING NEW ZEALAND RUGBY ANNUAL REPORT

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1 INSPIRING & UNIFYING NEW ZEALAND RUGBY ANNUAL REPORT

2 Our investment at all levels of the game brings great results HIGHLIGHTS RWC SUCCESS WE PUT IN $9.6 MILLION IN PROVINCIAL UNION GRANTS WE GOT OUT OLYMPIC QUALIFICATION OF OUR MEN S & WOMEN S SEVENS TEAMS 12,109 REGISTERED COACHES 6m SOCIAL MEDIA FOLLOWERS GLOBAL REPRESENTATION IN OCEANIA RUGBY, WORLD RUGBY AND SANZAAR HUGE CAMPAIGNS: APPLAUD AND BELONG 184,019 TEAM ALL BLACKS MEMBERS 150,727 TOTAL REGISTERED PLAYERS INTEGRITY 18OF THE GAME PRESENTATIONS TO TEAMS $1.3m IN EXTRA SPONSORSHIP REVENUE NEW WOMEN S RUGBY DEVELOPMENT 4OFFICERS 80/ 100 SCOREBOARD RESULT

3 NEW ZEALAND RUGBY ANNUAL REPORT 03 CONTENTS Financial Summary 5 Scoreboard Summary 5 Our People 6 From the Chairman and CEO 8 Scoreboard 12 All Blacks Thank You 15 Priority Report: All Blacks 16 Priority Report: Sevens 17 Integrity 18 Priority Report: Finance 19 Priority Report: Leadership 20 Priority Report: Rugby in Auckland 21 Priority Report: Community Rugby Strategy 22 Priority Report: Global Presence 24 Women s Rugby 25 Strategic Plan Update Scoreboard 27 Obituaries 30 Rugby Awards 31 On-field Results 33 Financial Statements 44 Auditor's Report 75 All Blacks Tribute 76 Photography: allblacks.com, Dave Lintott, Getty Images, Marc Weakley

4 NEW ZEALAND RUGBY ANNUAL REPORT 04 DIRECTORY AS AT 31 DECEMBER SPONSORS AS AT 31 DECEMBER New Zealand Rugby Life Members Peter Burke Rob Fisher Richie Guy Andy Leslie Sir Brian Lochore Sir Colin Meads John Sturgeon Eddie Tonks New Zealand Rugby Representatives to World Rugby Steve Tew Mark Robinson New Zealand Rugby Representatives to SANZAAR Steve Tew Brent Impey New Zealand Representative to the Federation of Oceania Rugby Unions Brent Anderson Judicial Officers Nigel Hampton QC Roger Drummond Bruce Squire QC Chris Morris Helen Morgan Auditors Deloitte, Wellington Solicitors Simpson Grierson, Wellington AJ Park, Wellington New Zealand Māori Rugby Board Wayne Peters (Chairman) Arapeta Gibson Peter Goldsmith Farah Palmer Howard Peeti Don Rangi Bernard Te Paa Walter Waaka Jim Wetere Principal Partner of New Zealand Rugby and Principal Sponsor of the All Blacks COMMERCIAL PARTNERS Major Global Sponsor of New Zealand Rugby Official Broadcasting Partner of New Zealand Rugby Appeal Council Rob Fisher Richie Guy Sir John Hansen John Pringle Stephen Ward Citing Commissioners Steve Hinds Mike O Leary John Wootton Martin Harris Ian Dallas Tony Duffin David Gray Associate Members New Zealand Colleges of Education Rugby Football Federation New Zealand Deaf Rugby Football Union New Zealand Defence Force Sports Committee New Zealand Marist Rugby Football Federation (Inc) New Zealand Rugby Foundation (Inc) New Zealand Schools Rugby Council New Zealand Universities Rugby Football Council (Inc) Rugby Museum Society of New Zealand (Inc) CHARITY PARTNERS

5 FINANCIALS & SCOREBOARD 4 42% 5 6% EXPENDITURE $134.3M 1 13% 3 32% 2 7% FINANCIALS $Million INCOME EXPENDITURE Game development Provincial Union grants Representative teams Competitions Governance and financial 8.2 TOTAL EXPENDITURE JWC hosting profit 0.1 RESULT (0.5) SCOREBOARD 7 5 0/6 4 11/15 6 6/12 5/6 SCORE 80/ /28 2 7/ OBJECTIVE Target Achieved All Blacks go back-to-back at Rugby World Cups 28% 28% Two Olympic Golds in Rio 10% 7% New Zealand Rugby is financially healthy 23% 23% New Zealand Rugby is well led 15% 11% Rugby is the sport of choice in wider Auckland 6% 0% Key initiatives of the Community Rugby Plan are implemented 12% 6% Enhance relationships with key international stakeholders 6% 5% TOTAL PERFORMANCE SCORE 100% 80% 3 23/23

6 NEW ZEALAND RUGBY ANNUAL REPORT 06 OUR PEOPLE AS AT 31 DECEMBER NEW ZEALAND RUGBY BOARD (Board from left to right) Wayne Peters Graham Cooney Mark Robinson Richard Dellabarca David Rhodes (President) Brent Impey (Chair) Maurice Trapp (Vice President) Glenn Wahlstrom Steve Tew (CEO) Stewart Mitchell Peter Kean Andrew Golightly BOARD COMMITTEES Rugby Committee: Graham Cooney (Chair) Mark Robinson Glenn Wahlstrom Andrew Golightly Kereyn Smith (seconded) Commercial Committee: Peter Kean (Chair) Richard Dellabarca Mark Robinson Andrew Golightly Julie Christie (seconded) Strategic Relationships and Planning Committee: Stewart Mitchell (Chair) Wayne Peters Richard Dellabarca Glenn Wahlstrom Helen Robinson (seconded) Audit and Risk Committee: Wayne Peters (Chair) Graham Cooney Peter Kean Stewart Mitchell Ex-officio for Board Committees: Brent Impey (Chairman of the Board) Steve Tew (Chief Executive Officer)

7 NEW ZEALAND RUGBY ANNUAL REPORT 07 NEW ZEALAND RUGBY EXECUTIVE TEAM 111 WHERE WE ARE: NZR CORPORATE EMPLOYEES 89 IN WELLINGTON 15 IN AUCKLAND 7 ARE REGIONAL WHO WE ARE: 53 ARE FEMALE 58 ARE MALE (Executive from left to right) Neil Sorensen Nigel Cass Jannine Mountford Steve Tew Cath Ingram Brent Anderson Nick Brown INSIDE NEW ZEALAND RUGBY We now have people located in Wellington and Auckland offices as well as working directly with the rugby community and high performance teams. The roles and responsibilities vary across NZR and recognise the scale and breadth of the game s priorities. We re a diverse group of people with a positive mix of different backgrounds, experience, gender and ethnicity. As well as the 111-strong corporate team, experienced people in many areas including coaching, team management, training, refereeing and playing are also part of the wider NZR team. For more information about our people, go to nzrugby.co.nz/about-us

8 FROM THE CHAIRMAN AND CEO RUGBY IS A TEAM GAME AND THE STRENGTH AND UNITY OF OUR TEAM HAS NEVER BEEN MORE IN EVIDENCE THAN IN. Side-by-side, we enjoyed incredible on and off-field successes; achieved what had not been achieved before; commemorated historic sacrifice; mourned the passing of some important members of our community; and faced up to some tough challenges and disappointments. The highlights for the year included: The All Blacks had an incredible year, which started in Apia with an amazing first-ever Test in Samoa and ended with the team bringing the Webb Ellis Cup back to New Zealand after success at Twickenham, being the first team ever to win back-to-back Tournaments and the first to win the Cup three times; The number of registered rugby players again topped 150,000, with big gains in the number of women and girls, supported by strong growth in coaching numbers; New Zealand Rugby (NZR) confirmed the Provincial Union Funding model, which will see 30 per cent more money invested at community and provincial levels from 2016; Women s rugby is in good health. Overall numbers are growing, while at the high performance level, the New Zealand Women s Sevens team were World Series champions for the third consecutive campaign and the Black Ferns were unbeaten in the International Super Series in Canada; NEW ZEALAND RUGBY ANNUAL REPORT 08 Both the All Blacks Sevens and New Zealand Women s Sevens teams qualified for the 2016 Rio Olympics; New Zealand Under 20 secured the World Rugby Under 20 Championship in Italy; The Highlanders took out an all-new Zealand Investec Super Rugby Final in Wellington, beating the Hurricanes to earn their first title; Canterbury secured their seventh provincial title in eight years, while Hawke s Bay won the ITM Cup Championship and held the Ranfurly Shield for seven defences before Waikato claimed the Log O Wood. Auckland won the Women s Provincial Championship while Wanganui lifted the Meads Cup and King Country secured the Lochore Cup; The New Zealand Heartland XV won their fixture against New Zealand Marist and put in a courageous effort against the Australian Barbarians side, made up of semi-professional players from the National Rugby Championship; Sevens rugby is thriving at provincial level with successful National, Regional and Women s Sevens Series tournaments held and Auckland (women) and Waikato (men) crowned National Champions; The Highlanders celebrate after winning their first Investec Super Rugby title in Wellington. THE NUMBER OF REGISTERED RUGBY PLAYERS AGAIN TOPPED 150,000 WITH BIG GAINS IN THE NUMBER OF WOMEN AND GIRLS.

9 The Jock Hobbs Memorial National Under 19 Tournament in Taupo was again a tremendous success, with Canterbury claiming the Premiership and Counties Manukau the Championship; The Rippa Rugby World Cup saw hundreds of schools compete to represent the 20 Rugby World Cup teams in Wellington and Roscommon School, representing Australia, was triumphant in the Final; Development of New Zealand Rugby 2020, the strategic plan for our organisation and rugby through to 2020, in consultation with stakeholders; NZR is committed to ensuring rugby is free of all forms of corruption and that the game remains an honest test of skill and ability so we are proud to have launched a number of initiatives aimed at safeguarding the integrity of our game; and We marked 100 years since the Gallipoli campaign, beginning with Anzac Day commemorations that saw rugby join with New Zealanders to acknowledge the sacrifice of soldiers and communities during the First World War. WE WILL CONTINUE TO LOOK FOR OPPORTUNITIES TO GROW REVENUE FOR RUGBY, WHILE ENCOURAGING FINANCIAL PRUDENCE AT ALL LEVELS. STRATEGIC PRIORITIES Our priorities were aligned to the Towards 2016 Strategy. We have reported on each priority in more detail elsewhere in this Annual Report but in summary: 1. All Blacks go back-to-back in Rugby World Cups: The team went unbeaten through the Tournament, played great rugby and strengthened their connections with fans, partners and stakeholders nationally and globally. 2. Two Olympic Gold medals in Rio: Both the All Blacks Sevens and New Zealand Women s Sevens team qualified for Rio, with the women s team earning their third consecutive World Series title. 3. NZR is financially healthy by driving revenue generation, cost management and sustainability throughout the game: Strong cash reserves, ensuring expenditure was in line with forecasts, securing or renewing commercial partnerships, and confirmed increased investment in Provincial Unions all reflected a healthy financial position. Decisions made in to invest in the game at both Provincial Union and national levels will be critical in achieving our goals through to NZR is well-led and delivered for fans, players and commercial partners: Seven initiatives were implemented as part of our strategy for increasing fan engagement and support for the All Blacks remains high. Regrettably we failed to achieve the targets we had set for viewership and attendance during Investec Super Rugby and ITM Cup. Attracting fans to Investec Super Rugby and the Mitre 10 Cup is a priority for Rugby is the sport of choice in wider Auckland: While we implemented projects and strengthened relationships in the wider Auckland region, we did not achieve the planned five per cent increase in player numbers in this area. The Black Ferns were unbeaten in the International Super Series in Canada.

10 NEW ZEALAND RUGBY ANNUAL REPORT The key initiatives contained in the Community Rugby Strategy are implemented to assist in rugby bringing communities together and being the sport of choice for teenagers: In the final year of the Community Rugby Strategy, we saw incredible growth in female playing numbers, improved support for coaches, and survey results that show New Zealanders' love for the game but we continue to struggle to recruit and retain teenagers and referees. 7. Enhance our relationships and reputation with key international stakeholders and markets: We continue to play an important role within World Rugby, SANZAAR and Oceania Rugby. A tour schedule with the British & Irish Lions was secured and planning for this exciting series is underway. Rugby World Cup and the All Blacks first Test in Samoa also provided exciting opportunities to connect with overseas fans. SCOREBOARD PERFORMANCE NZR recorded a score of 80 out of 100, which is an achievement we are proud of but highlights some of the challenges facing our game that require innovative solutions. We achieved what we set out to in terms of national team performance, in particular the All Blacks; growing the number of female players and coaches; operations; and met our targets around financial performance. However, we were disappointed not to achieve what we wanted to with regards to growing the game in Auckland, referee recruitment and viewership and attendance of our domestic competitions. In a number of areas we experienced growth, which is always positive, but fell short of our targets. We will always set ambitious targets for ourselves as an organisation and strive to achieve those without compromise. FINANCIAL PERFORMANCE NZR is reporting a loss of $463,000 for the financial year. This was an improvement on the budgeted loss for the year of $955,000. The result reflected the financial loss for the Wellington Sevens tournament and the deliberate and positive decision to continue investing in the game during a Rugby World Cup year, in which our fixtures and tours income is significantly affected and All Blacks costs, in particular, are necessarily higher than in other years. We continued our investment in the Sevens programme to ensure both teams are in the best possible shape for their 2016 Olympic campaigns. We also expanded our investment in some strategic game development areas including teenage rugby, the women s game and rugby administrators in secondary schools who are a critical link between clubs and schools. Ensuring the overall financial health of rugby is a priority and we are aware that many of our Provincial Unions continued to face challenges. With cash reserves at $59.1 million, broadcast deals completed for the next five years and the Lions Series signed for 2017, the Board has approved increased investment to Provincial Unions from 2016 under the Provincial Union Funding Review to alleviate some of their financial pressures and assist them to rebuild their balance sheets. Canterbury claimed their seventh provincial rugby title in eight years with a win over Auckland in Christchurch.

11 NEW ZEALAND RUGBY ANNUAL REPORT 11 FROM THE CHAIRMAN AND CEO CONTINUED The medium-term outlook is secure but a solid financial position requires both sustainable income and careful cost management, so we will continue to look for opportunities to grow revenue for rugby, while encouraging financial prudence at all levels. Increasing revenue to support the game in New Zealand will require NZR to enter into partnerships offshore, make strategic investments and capitalise on technology opportunities STRATEGIC PRIORITIES In December, NZR confirmed its strategic plan through to The strategic focus areas identified in New Zealand Rugby 2020 are: 1. The All Blacks and other national teams winning pinnacle events 2. More players and more communities participating 3. Fans are engaged and numbers are growing 4. Positive global presence 5. Rugby is the sport of choice in wider Auckland 6. British & Irish Lions Series is successful on and off the field NZR s priorities for 2016 are linked to each of these focus areas. ACKNOWLEDGMENTS Rugby has a strong heart, which is essential to getting the job done. We would particularly like to thank the players, coaches, referees, administrators and volunteers of our many clubs, schools and Provincial Unions as well as everyone in New Zealand and around the world that supports you, our teams and our competitions. You re an essential part of this team and we are proud to stand with you. That sense of team was particularly strong this year as the rugby community mourned the loss of some of its members. The passing of each All Black is a sad occasion, but the deaths of Jerry Collins and Jonah Lomu in particular had a profound effect on local, national and international communities. NZR is grateful for the contribution of our commercial partners, especially adidas, AIG and SKY Television whose support is vital for funding, promoting and strengthening the game. We thank the New Zealand Government; Sport New Zealand; High Performance Sport New Zealand; the many regional and local Councils who maintain grounds and infrastructure at a local level for rugby in New Zealand; and our key partner ACC, as well as the media for their coverage of the game. We would like to recognise and thank our fellow Board Members and give our thanks to the dedicated team at NZR for their on-going commitment and passionate, professional support. WE WOULD PARTICULARLY LIKE TO THANK THE PLAYERS, COACHES, REFEREES, ADMINISTRATORS AND VOLUNTEERS. Brent Impey, NZR Chairman Steve Tew, NZR CEO Wanganui were Meads Cup champions after winning their Final against South Canterbury in Timaru.

12 NEW ZEALAND RUGBY ANNUAL REPORT 12 SCOREBOARD PRIORITY 1 PRIORITY 2 PRIORITY 3 All Blacks go back to back Two Olympic gold medals in Rio Rugby in New Zealand is financially healthy Win Rugby World Cup / ACHIEVED Retain Bledisloe Cup / ACHIEVED Ensure integration across All Blacks, All Blacks Sevens, Investec Super Rugby Coaches and NZR High Performance team / ACHIEVED Retain 75 per cent of players off contract at the end of that NZR wants to / ACHIEVED 33 per cent of New Zealand Under 20 squad have transitioned to Investec Super Rugby squads by 2016 / ACHIEVED All Blacks Sevens qualify for 2016 Olympics / ACHIEVED All Blacks Sevens seeded first for 2016 Olympics / SEEDINGS TO BE ANNOUNCED IN 2016 All Blacks Sevens win the HSBC Sevens World Series / NOT ACHIEVED Women s Sevens qualify for 2016 Olympics / ACHIEVED Women s Sevens seeded first for 2016 Olympics / SEEDINGS TO BE ANNOUNCED IN 2016 Women s Sevens win the World Rugby Sevens Series / ACHIEVED Increase revenue across NZR s commercial portfolio / ACHIEVED Finalise remaining territories broadcast agreements for Rest of the World / ACHIEVED Renew the radio broadcast rights on improved terms to NZR / ACHIEVED Ensure NZR meets budget / ACHIEVED Deliver sustainable structures for Professional Rugby through Collective Bargaining with a new CEA or extension agreed with the New Zealand Rugby Players Association / ACHIEVED Review of Provincial Union Funding completed and Funding Model approved by NZR Board in / ACHIEVED Licence issued for parties to operate the Highlanders / ACHIEVED Towards 2020 Strategy development and approved by NZR Board / ACHIEVED SCORE 28/28 SCORE 7/10 See SCORE 23/23 See page 16 page 17 See page 19

13 NEW ZEALAND RUGBY ANNUAL REPORT 13 SCOREBOARD CONTINUED PRIORITY 4 PRIORITY 5 Rugby is well-led and delivered for fans, players and commercial partners Rugby is the sport of choice in wider Auckland An overall staff engagement result that betters the results and reflects a respectful, progressive and world class culture / ACHIEVED Maintain Secondary Level through the ACC Workplace Safety Audit / ACHIEVED In conjunction with Provincial Unions and Super Rugby clubs, develop a long-term Fan Engagement Strategy and implement a series of initiatives in support of the strategy / ACHIEVED Achieve budgeted ground attendance for the All Blacks domestic Tests / ACHIEVED Maintain average TV viewership at levels for the All Blacks domestic Tests / ACHIEVED Increase average ground attendances above levels for Investec Super Rugby Round Robin and ITM Cup / NOT ACHIEVED Maintain or improve average weekly live viewership at or above levels for Investec Super Rugby Round Robin and ITM Cup / NOT ACHIEVED New model for Wellington Sevens delivers successful operational tournament, as assessed by positive reviews from World Rugby, participating teams and media coverage / ACHIEVED Wellington Sevens repositioned and re-launched for 2016 / ACHIEVED Achieve an 85 per cent satisfaction rating for Test match delivery and across ITM Cup and Pink Batts Heartland Championship Operational Reviews / ACHIEVED Projects agreed as part of the wider Auckland strategy contribute to a five per cent increase in player numbers across the three Provincial Unions in wider Auckland / NOT ACHIEVED SCORE 11/15 See page 20 SCORE 0/6 See page 21

14 SCOREBOARD CONTINUED PRIORITY 6 PRIORITY 7 Implement the key initiatives of the Community Rugby Strategy to assist in rugby bringing communities together and being the sport of choice for teenagers Enhance our reputation and relationships with key international stakeholders and markets Player retention rates increase for Small Blacks and teenagers / NOT ACHIEVED Coach retention rate increases / ACHIEVED Number of referees aged increases by 10 per cent / NOT ACHIEVED Number of Māori players aged increases by five per cent / NOT ACHIEVED Recruit and resource three Regional Women s Rugby Managers / ACHIEVED Develop and pilot playing opportunities for women in at least three Provincial Unions / ACHIEVED Maintain representation on World Rugby Committees and Working Parties / ACHIEVED Agree tour schedule, local contracts and commercial model with British & Irish Lions and host venues and cities / ACHIEVED Support Pacific Island rugby through Oceania Rugby secretariat role and appropriate leadership / ACHIEVED New SANZAAR strategy and competition structure in place with leadership from NZR / PARTLY ACHIEVED Black Ferns win International Super Series in Canada / ACHIEVED Female player numbers increase by 10 per cent / ACHIEVED SCORE 6/12 SCORE 5/6 See page 22 See page 24

15 NEW ZEALAND RUGBY ANNUAL REPORT 15 ALL BLACKS THANK YOU FOR SUPPORT IN ON BEHALF OF THE ALL BLACKS, I WOULD LIKE TO THANK EVERYONE IN NEW ZEALAND AND AROUND THE WORLD WHO SHOWED SUCH FANTASTIC SUPPORT FOR THE TEAM. The team really appreciated and loved the support we got and it was a big thing for us in, playing so much of our rugby away from home, to know that we had so many people behind us. Your passion really helped us to enjoy what we do and gave us an edge. Starting in Apia in July, it was a great year to be part of the All Blacks. The passion and enthusiasm of the rugby fans in Samoa was really special and it was great to be part of such a historic occasion. We were also pleased to retain the Bledisloe Cup the team definitely didn t want to let it go and to spend time out in the community before flying to the United Kingdom. Rugby World Cup was a fantastic experience and the team made the most of our opportunities. We really enjoyed the whole campaign and to get the job done just capped it off. It was then great to get home and celebrate with everyone who has supported this team and to share the Cup with our families, friends and communities. I hope you all enjoyed the season and will be back behind the team in Cheers, RICHIE

16 NEW ZEALAND RUGBY ANNUAL REPORT 16 A GOLDEN YEAR FOR THE ALL BLACKS PRIORITY 1 All Blacks go back-to-back in Rugby World Cups Well-organised with a strong vision and adaptable game plans, buoyed and humbled by the support of their passionate fans, the All Blacks made history throughout. The All Blacks kicked off their year with their first-ever Test match in Samoa, a fantastic occasion that entered rugby folklore. It was a hard-fought encounter which provided a number of players with opportunities, and celebrated the important relationship between New Zealand and Pacific Island rugby. A truncated Investec Rugby Championship followed and we were delighted to retain the Bledisloe Cup, which the team has held since Planning for Rugby World Cup began several years ago. The many hours of preparation and training and a huge belief and trust in the vision culminated in impressive performances at the knock-out end of the Tournament, with the team adapting successfully to the differing conditions and oppositions to become the first team to win back-to-back Rugby World Cups and lift the Webb Ellis Cup three times. The team appreciated the support of All Blacks fans wherever they played. It was special to see so many in the stands and streets of the United Kingdom but the team knew they had massive support from back in New Zealand and the welcome home the team received and congratulatory messages on social media were truly humbling. was the last time in the All Blacks jersey for a number of players and we would like to thank all of them for their service and the contribution they have made to the team s success and how they enhanced the All Blacks legacy. We would particularly like to thank Richie McCaw, Dan Carter, Keven Mealamu, Ma a Nonu, Conrad Smith and Tony Woodcock for their hugely significant commitment to the team. While he would prefer not to be singled out, a special mention of Richie s contribution is warranted. He retired after playing 148 Tests, winning 131 and captained the All Blacks on 111 occasions. He was deservedly named New Zealander of the Year. We are confident that the future success of the team is also assured, with a strong core of players remaining committed to New Zealand Rugby. We congratulate the New Zealand Under 20 team on their win in Italy. Players from the Under 20s programme continue to make the step up to Investec Super Rugby, with 12 players from the side already named to play Super Rugby in NZR is also pleased to report on the achievement of all objectives relating to implementation of the High Performance Strategy, in particular the integration of All Blacks, All Blacks Sevens and Super Rugby coaches into the High Performance team as well as retaining a significant majority of the players we sought to retain, to ensure our competitions remain world-leading. The All Blacks first-ever Test in Samoa was a really special occasion.

17 NEW ZEALAND RUGBY ANNUAL REPORT 17 PROGRESS MADE ON ROAD TO RIO PRIORITY 2 Two Olympic Golds in Rio New Zealand s sevens ambitions took several steps forward in, with both the All Blacks Sevens and New Zealand Women s Sevens teams qualifying for the Rio Olympics in 2016 and being great ambassadors for New Zealand and rugby. We are confident after the work done in that we have a suitable set of talented athletes available and ready to represent New Zealand at Rio and that our teams have good plans, structures and depth in place. Nineteen female players were selected across six Tournaments as the Women s Sevens side claimed its third consecutive World Series title, while 24 players took the field for the All Blacks Sevens, who finished third. A number of players had outstanding seasons but we would particularly like to congratulate Portia Woodman on being named World Rugby Women s Sevens Player of the Year. Preparation for the Olympics advanced significantly, with planning and logistics confirmed and a dedicated team within NZR dealing with the many issues that competing at an Olympic event brings. Funding to sevens was also increased to ensure that necessary training and resources could be provided to players. In August, a core of sevens specialists from the /15 season were named in the initial training squad for /16 announced by Coach Sir Gordon Tietjens, while the training squad for the Women s Sevens team was named in early Nationally, the talent pool continues to grow with the National and Regional Sevens tournaments and Women s Sevens Series providing opportunities for players, coaches and referees in the shorter form of the game. The standards at these tournaments continue to rise. The establishment of a formal sevens Talent Identification network, integrated into the fifteens network was a key element in ensuring New Zealand has the players to perform at pinnacle events now and in the future. The appointment of a High Performance Talent Development Sevens Manager, supported by three Regional Development Co-ordinators, allows NZR to support Provincial Unions and provide participants with meaningful competition that will further build depth. Planning also commenced in to ensure that sevens rugby is well-positioned following the 2016 Olympics, with eyes already looking towards Tokyo in 2020 and interest in this form of the game expected to increase. Katarina Whata-Simpkins in action for New Zealand Women s Sevens in Dubai. NATIONALLY THE TALENT POOL CONTINUES TO GROW

18 PROTECTING THE INTEGRITY OF THE GAME NEW ZEALAND RUGBY ANNUAL REPORT 18 NEW ZEALAND RUGBY IS COMMITTED TO ENSURING RUGBY IS FREE OF ALL FORMS OF CORRUPTION AND ENSURING THE GAME REMAINS AN HONEST TEST OF SKILL AND ABILITY. Integrity in sport has been a huge issue internationally over the past 12 months, with scandals involving corruption in football, doping in athletics, and match-fixing in cricket making headlines. Problems with a sport s integrity threaten the welfare and reputations of players, and undermines its appeal to participants, fans and sponsors. NZR has been proactive in seeking to avoid being embroiled in significant issues and made this a priority for the organisation. We have employed an Integrity Manager within the Player Services team to develop frameworks and processes relating to betting and corruption, anti-doping, supplements, medications and illegal drugs. Presentations have been delivered to Provincial Union, Investec Super Rugby and National team players and support staff; educational materials for players outside those groups have been produced; and monitoring is being undertaken in the anticorruption space. Overseas developments are also being closely monitored. As well as leading work in this area, NZR is also working to ensure that Provincial Unions and Super Rugby clubs have their own processes in place to minimise integrity risks. Alongside the potential threats to integrity identified above as the focus for Player Services, others inside New Zealand Rugby have also been tasked with working on broader integrity issues such as inclusion, side-line behaviour and player safety issues, amongst others will be an important year to embed the progress made, and to do more in conjunction with all stakeholders to ensure that player interests in this area are protected, and that the reputation of rugby in New Zealand is maintained, and enhanced. Cambridge High School players in action during the Co-Education Schools 1st XV Championships Final.

19 NEW ZEALAND RUGBY ANNUAL REPORT 19 FINANCIAL HEALTH MAINTAINED IN AN EXTRAORDINARY YEAR PRIORITY 3 New Zealand Rugby is financially healthy by driving revenue generation, cost management and sustainability throughout the game In what was an extraordinary year financially, New Zealand Rugby maintained a healthy financial position and ensured the sustainability of rugby over the next five years. We recorded a loss of $463,000 in. This is an improved result from our budgeted loss of $955,000 due to careful financial management. The decision to operate at a deficit this year was taken based on our commitment to continue to invest in our teams and our game. A Rugby World Cup year is an abnormal year with no Steinlager Series in June, only two home Investec Rugby Championship Tests and no revenue share Tests. Consequently our fixtures and tours income was $12 million lower than. However, World Rugby provided compensation for the reduction in income stemming from fewer Test matches, including the truncation of the Investec Rugby Championship. The year also provided increased one-off sponsorship and licensing revenue driven by Rugby World Cup. In addition, we welcomed a number of new partners, including ASB. That our overall income rose while the fixtures and tours income was so significantly reduced, is testament to the work done by everyone involved in promoting of our brands and the support we receive from our commercial partners. Costs associated with supporting the All Blacks goal of winning historic back to back World Cups increased, including carrying a bigger squad, supporting team assemblies and taking part in the historic Manu Samoa Test. Meanwhile our investment in all our national teams particularly for the two sevens teams as they commenced their Olympic campaigns, increased. We also increased our investment in some strategic game development areas including fan engagement, teenage and secondary school rugby and the women s game. Rugby in New Zealand is generally healthy although there are still challenges for our Provincial Unions and Investec Super Rugby clubs, and many experienced reduced commercial and gate revenue. The majority continue to operate in the black despite those challenges, adapting to the changing environment. Following extensive consultation throughout it was decided that NZR would significantly increase the funding available to Provincial Unions from 2016 which should help put our members on a firmer financial footing to better deal with the challenges and opportunities ahead. At the end of the year cash reserves remained strong at $59.1 million, slightly down on the previous year, which is due more to timing of receipt of one-off grants in. Our commercial partners ran great events that connected with fans around the world, like this AIG Touchline experience in London during RWC.

20 FAN FERVOUR A BIG CHALLENGE FOR RUGBY PRIORITY 4 New Zealand Rugby is well-led and delivered for fans, players and commercial partners New Zealand Rugby continued to deliver great experiences for people connected with the game. However, we missed the targets we set for viewership and attendance for Investec Super Rugby and provincial rugby. We delivered some great rugby events, from two sold-out All Blacks Tests to provincial rugby competitions and tournaments that received 88 per cent satisfaction ratings in operational reviews. Wellington Sevens operations were successful, receiving continued positive feedback from World Rugby and participating teams and the tournament was re-positioned for 2016 although clearly ticket sales were disappointing. In addition, we delivered some fantastic community-focused events, including All Blacks to the Nation. Both viewership and attendance figures for Super Rugby and ITM Cup matches declined from the position, which was extremely disappointing. ITM Cup in particular struggled for fan and media attention in competition with RWC. Viewership and attendance are issues for rugby generally, and particularly for those Provincial Unions that are dependent on gate revenue, so to ensure the sustainability of our sport, NZR developed a fan engagement strategy. We implemented a series of initiatives to support this strategy, starting with one of the largest pieces of fan research we have ever undertaken. This research helped us determine a set of priorities for the year: making it easier for kids and families to attend ITM Cup games; rewarding loyal fans; and both improving and increasing our social media presence. With regards to our other fandoms, we were delighted with the results of targeted Team All Blacks and Belong campaigns, which encouraged fans around the world to show their support for our national teams, as well as strong growth and engagement across all our social media channels, which reached over six million followers. That was a Rugby World Cup year meant fewer opportunities for our All Blacks sponsors and more restrictions on them. However, we were generally able to accommodate requests and satisfy the expectations of our sponsor group across our teams and competitions, in particular continuing to deliver high-quality world-leading on-field performances. Our commercial and charity partners ran successful campaigns featuring our teams, reaching more people than ever before. A great example was Air New Zealand s Men in Black safety video, which received almost 35 billion media impressions. NEW ZEALAND RUGBY CONTINUED TO DELIVER GREAT EXPERIENCES FOR PEOPLE CONNECTED WITH THE GAME. A number of sponsors successfully leveraged off the All Blacks presence in the United Kingdom for RWC, running events that attracted large numbers of fans. Across rugby, we continue to ensure our own people are looked after and were delighted to achieve Tertiary Level through the ACC Workplace Safety Audit, which allows NZR, the Super Rugby clubs and Provincial Unions to efficiently support players recovery from injury. We were also pleased to see an increase in the engagement result for NZR staff, reflecting a respectful, progressive and world class workplace environment as well as significant steps taken to protect the integrity of our game, ensure player safety and encourage positive sideline behaviour. Fans, like this young Wellington supporter above, are essential to the sustainability of our game.

21 NEW ZEALAND RUGBY ANNUAL REPORT 21 PLENTY DELIVERED BUT MORE REQUIRED IN AUCKLAND PRIORITY 5 Rugby is the sport of choice in wider Auckland Auckland is New Zealand s fastest-growing region and has presented New Zealand Rugby, alongside all other sports, with unique challenges and opportunities resulting from the diversity of its people, new communities, competing leisure and entertainment options, and economic pressures. Our priorities in Auckland are shaped by the Wider Auckland Strategy which is being delivered by New Zealand Rugby in partnership with Auckland Rugby, Counties Manukau Rugby, North Harbour Rugby and the Blues. In, NZR set an ambitious goal of increased participation, measured by five per cent growth in the number of registered players across the Auckland, Counties Manukau and North Harbour catchment areas. We were disappointed to not achieve that growth. Although we failed to achieve that target, we delivered a number of important new initiatives that we believe will contribute significantly to future growth and increased participation in the region. We were particularly focused on exploring alternative formats of the game to make it more attractive to more communities, providing aspirational secondary school competitions and strengthening inter-provincial co-operation. Amongst the initiatives supported and delivered under the Wider Auckland Strategy were: a successful Under 69kg Competition, which was run across all three Unions; a 10-aside Tournament involving four Tertiary institutions; and enhanced pre-season competitions, including a pre-season Under 21 and Secondary School First XV competitions. We also held appreciation events for Secondary School coaches. Resources directly benefited clubs, including education modules on dealing with Auckland Council and Local Boards and a power procurement initiative that delivered over $400,000 in electricity and gas savings for the 27 participating clubs. We know that we need to do better in Wider Auckland and NZR is committed to appropriately resourcing delivery of these initiatives. In April we employed a person full-time to manage the Wider Auckland Strategy. Wider Auckland has been included as a priority for the future under New Zealand Rugby 2020 and a further $1m investment has been committed to under the Strategy by NZR and its partners for Aucklanders showed their passion for rugby with a great welcome home for the All Blacks.

22 NEW ZEALAND RUGBY ANNUAL REPORT 22 COMMUNITY GAME PROVIDES OPPORTUNITIES & HIGHLIGHTS Rotorua BHS defeated Scots College to become National First XV Champions. PRIORITY 6 The key initiatives contained in the Community Rugby Strategy are implemented to assist in rugby bringing communities together and being the sport of teenagers Clubs, schools and Provincial Unions continue to provide rugby in this country with its strength, heart and character and we are pleased to report on a number of highlights for the year, while acknowledging a number of areas that require further action. Player numbers again topped 150,000 and increased slightly from, with female players the fastestgrowing group. The number of coaches grew by three per cent, with more staying in the game, and we provided world-leading support and resources for coaches, particularly through the network of Rugby Development Officers. We were encouraged by a low serious injury rate as well as by participation in our RugbySmart programme and adoption of our positive sideline behaviour initiative APPLAUD. Concussion and its potential long-term consequences are an increasing issue for rugby and we increased our focus on responding to suspected concussions. For NZR this means better understanding the issues by conducting and monitoring research, actively managing the risks in rugby according to the best available evidence and keeping players as safe as possible. We would like to congratulate Roscommon School from Counties Manukau, who won the Rippa Rugby World Cup, representing Australia. We are excited about our improving digital presence, with the Random Rugby and Small Blacks TV channels continuing to grow and attract viewers and followers online. Māori rugby is also healthy, with Māori teenagers (14-18) playing the game increasing by four per cent, while development camps are providing great rugby experiences and non-conventional pathways for these players and their communities. Recruiting and retaining teenagers in rugby remains a challenge for us, as for all sports, and we were disappointed not to meet our retention targets. Similarly, while the number of referees aged years grew, we would like to see further growth in this area. We introduced a new referee coach development programme and dedicated additional resources to improve referee quality and experiences. was the final year of the Community Rugby Strategy, which will be reviewed thoroughly in Delivering the initiatives of the Community Rugby Strategy requires partnerships with and contributions from Provincial Unions, clubs, social organisations, and government agencies and we appreciate all the assistance these organisations give to us. Sustaining the game at this level requires significant investment and we look forward to seeing the increased Provincial Union funding used to grow the community game in all areas. We would particularly like to thank the thousands of volunteers and administrators, who do so much for the game we all love. We couldn t have a game without you.

23 The Rippa World Cup was a great chance for kids to come together from around the country.

24 NEW ZEALAND RUGBY ANNUAL REPORT 24 STRONG INTERNATIONAL PRESENCE PRIORITY 7 Enhance our reputation and relationships with key international stakeholders and markets In a year in which New Zealand teams dominated rugby globally, New Zealand Rugby was also successful in improving our relationships with fans, partners and stakeholders overseas and building the reputations of our organisation, teams and sport. Our relationship with our Pacific neighbours received renewed attention with the All Blacks playing a historic first Test in Samoa. As well as being part of a special occasion, we were pleased the Test created profile for rugby in the Oceania region. New Zealand teams and officials again visited a significant number of countries where they were great ambassadors for the sport and our country, participating in a range of positive activities with sponsors, stakeholders and community groups. We have a good relationship with World Rugby and our people were well-represented on a number of different committees and working parties, enabling us to play an important role on the international stage. Rugby World Cup provided a great opportunity to strengthen a number of these connections. Within SANZAAR, our leadership role increased as this organisation continued to grow and the participation in and audience for its competitions expanded. The process of developing a new strategy for SANZAAR was initiated, but not completed and that is a priority for NZR assumes the Chair of SANZAAR for 2016 and Rugby World Cup and the upcoming 2016 Rio Olympics both provided us with opportunities throughout the year to strengthen our relationships with our Government partners: New Zealand Trade and Enterprise, Tourism New Zealand, Sport New Zealand, Ministry of Foreign Affairs, and the New Zealand Olympic Committee. Working with these agencies, we delivered some great events and connected with fantastic supporters in New Zealand and around the world. We were particularly delighted with how well the All Blacks were received off the field at Rugby World Cup. Planning for the British & Irish Lions Series was well-advanced throughout the year with the schedule confirmed and city and venue contracts substantively agreed. We have a good relationship with the Lions and are looking forward to delivering a successful Series on and off the field in New Zealand Under 20 made our country proud on and off the field.e

25 WOMEN S RUGBY IN NEW ZEALAND RUGBY ANNUAL REPORT 25 A FANTASTIC YEAR FOR OUR NATIONAL WOMEN S TEAMS AND COMPETITIONS WAS MATCHED BY IMPORTANT DEVELOPMENTS OFF THE FIELD, WITH THIS IS OUR GAME: WOMEN S RUGBY STRATEGY ROLLED OUT NATIONALLY. This is Our Game was launched in late and aims to harness the growing popularity of rugby among girls and women and provides a framework to grow the game from Small Blacks, through to Schools, Clubs and at high performance level. It has identified the areas where investment is required and resources need to be allocated as well as defining what success looks like for women s rugby. The objectives of This is Our Game are more women playing more (21,000 by 2021); women having a lifelong love of the game; and Black Ferns and New Zealand Women s Sevens winning pinnacle events, including Rugby World Cups and Olympic Gold medals. Achieving those objectives is important for NZR. The appointment of a Head of Women s Rugby and the recruitment of four Regional Women s Rugby Managers; the development of pilot playing opportunities in at least three Provincial Unions; and an increase in female player numbers of more than 10 per cent, accounted for three per cent of NZR s scoreboard result in. As well as a dedicated Women s Rugby team, people across the organisation are focused on areas of the game, including coaching, refereeing and marketing. The priorities for women s rugby in were research, relationships and promotion. Research carried out amongst female secondary school players, for instance, indicated a strong level of interest in playing, and a focus for the future will be on providing opportunities and pathways for teenage players. The Provincial Unions and schools play an essential role in providing meaningful rugby for women and increased participation by women and girls are the best option for Unions looking to grow. A strong partnership between the Unions and NZR is important, as well as with other sporting and government agencies, so visiting each Union and learning more about the opportunities and challenges in each area was vital. Promotion of rugby as a game for women is a key focus area, aimed at both changing traditional attitudes and building awareness of the sport, opportunities to play and player pathways. The development of a women s rugby identity in further defined what women s rugby is and looks like and will link the many positive stories to come from women s rugby.

26 NEW ZEALAND RUGBY ANNUAL REPORT 26 FAR-REACHING AND THOUGHTFUL STRATEGY TO GUIDE RUGBY TO 2020 Ensuring a great future for rugby NZR is proud to lead the development and delivery of rugby in New Zealand a sport that is part of the fabric of our country. In 2013, NZR launched Towards 2016, which identified what greatness would look like for rugby and for NZR in NZR Board and Management carried out a mid-term review of Towards 2016 in which showed that we need to extend our plan to A more thorough review and extensive consultation within and outside rugby followed in and has resulted in New Zealand Rugby New Zealand Rugby 2020 has been developed to showcase NZR s ambitions through a significant period for rugby and provides an opportunity to continue past successes. During the period of New Zealand Rugby 2020, NZR will celebrate 125 years of leading, growing, supporting and promoting our game. Our game has evolved considerably over this time, as has our organisation. The choices we make about the direction of the game now build on the solid foundation achieved over generations. NZR has committed to three Guiding Principles that will influence what we do and how we will do it: 1. To keep all parts of the rugby system in New Zealand working well and led by the right people. 2. To be agile and challenge ourselves to be modern and ready for the future through innovation and research. 3. To align our daily operations so that we deliver on our strategic plan with financial prudence. The strategic focus areas to 2020 are: 1. The All Blacks and other national teams winning pinnacle events 2. More players and more communities participating 3. Fans are engaged and numbers are growing 4. Positive global presence 5. Rugby is the sport of choice in wider Auckland 6. British & Irish Lions Series is successful on and off the field We are very proud of what is an ambitious vision for rugby spanning the entire game. New Zealand Rugby 2020 helps us sets priorities for our work as an organisation so we can ensure we are all pulling together in the right direction to manage our challenges and opportunities and keep rugby strong. As part of NZR s annual business planning we will use this strategy as the foundation document when we plan our key priorities each year and develop a scorecard to measure success and review progress towards the achievement of our goals. New Zealand Rugby needs to be open to challenges and opportunities and an effective strategy will make that happen.

27 NEW ZEALAND RUGBY ANNUAL REPORT SCOREBOARD ALL BLACKS AND OTHER NATIONAL TEAMS WINNING PINNACLE EVENTS MORE PLAYERS AND MORE COMMUNITIES PARTICIPATING All Blacks win Steinlager Series, win Investec Rugby Championship, retain Bledisloe Cup and win all End of Year Tour matches 40 per cent of new player inductees to Investec Super Rugby come from Under 20s programme All Blacks Sevens win a gold or other medal at 2016 Rio Olympic Games New Zealand Women s Sevens win a gold or other medal at 2016 Rio Olympic Games Black Ferns win all matches on UK tour NZR retains at least 75 per cent of players off contract who NZR seeks to retain Increase Small Blacks registrations by two per cent Increase teenager registrations by one per cent Total female player numbers reach 21,000 Referees aged increase by 10 per cent Coach to player ratio to be at 1:15 Increase number of competitions in alternate rugby formats Agreement reached with Touch on revised or strengthened Memorandum of Understanding Rugby participant satisfaction survey ratings above 4.0 At least two New Zealand referees at the Olympics At least three New Zealand referees officiating Test matches TARGET 30% TARGET17% 2016 will be a huge year for both sevens teams.

28 NEW ZEALAND RUGBY ANNUAL REPORT SCOREBOARD CONTINUED FANS ARE ENGAGED AND NUMBERS ARE GROWING POSITIVE GLOBAL PRESENCE Exceed 800,000 New Zealand viewers for All Blacks home Tests Exceed 715,000 live Pay TV viewers for All Blacks offshore Investec Rugby Championship matches Exceed average live viewers for Investec Super Rugby regular season matches Average live viewership of Mitre 10 Cup matches (for the full season) exceeds 60,000 All Blacks home Test matches achieve budgeted sales Crowd attendance at Investec Super Rugby regular season matches exceeds average Crowd attendance at Mitre 10 Cup full season matches exceeds average Total digital audience of 8.4 million Achieve a bounce rate of less than 65 per cent on allblacks.com Team All Blacks registrations reach 300,000 Achieve a bounce rate of less than 66 per cent on superrugby.co.nz Brand tracking shows interest in All Blacks, All Blacks Sevens and New Zealand Women s Sevens at the same or increased levels as in and intensity of interest in Investec Super Rugby and Mitre 10 Cup is also at the same or increased levels as in 42/45 scores for Operational KPIs at Auckland and Wellington Tests 40/45 scores for Operational KPIs at Dunedin, Hamilton and Christchurch Tests All Blacks rank as most popular international rugby team based on facebook fans All Blacks remain within the Top 100 sports clubs based on facebook fans Community investment exceeds current benchmark Contract target revenue across NZR s commercial portfolio Sign two new offshore commercial partners Re-sign key sponsorships on more favourable terms than NZR s Long Term Projection Maintain all seats on various World Rugby committees Decide on target offshore markets and develop an offshore policy Support Pacific Island rugby through Oceania Rugby secretariat role and appropriate leadership New SANZAAR strategy and competition structure in place with NZR leadership TARGET 17% TARGET 12%

29 NEW ZEALAND RUGBY ANNUAL REPORT SCOREBOARD CONTINUED RUGBY IS THE SPORT OF CHOICE IN WIDER AUCKLAND BRITISH & IRISH LIONS SERIES IS SUCCESSFUL ON AND OFF THE FIELD FROM NEW ZEALAND RUGBY 2020 GUIDING PRINCIPLES Percentage change in player registrations for Auckland, Counties Manukau and North Harbour is better than for the other Provincial Unions Player to coach ratio for Auckland, Counties Manukau and North Harbour is better than for the other Provincial Unions Governance and management of Wider Auckland Strategy is rated as positive by participating organisations Successful implementation of the confirmed projects under the Wider Auckland Strategy At least seven new alternate format competitions run Create detailed budgets that meet or exceed the long-term budget projections Pre- and public sales operational on the NZR Centralised Ticketing Platform Key commercial suppliers all appointed Series sponsor secured and contracted at a level that meets or exceeds long-term budget projections City and Government engagement plans are in place and match what they have committed to Ensure NZR meets or exceeds 2016 budget Collective Employment Agreement ratified Develop and deliver a comprehensive programme to leverage the RWC trophy Attain Secondary Level through the ACC Workplace Safety Audit for NZR Contract concluded to deliver on the expansion of the RugbySmart injury prevention programme Overall NZR People Engagement Result that betters NZR s result and reflects a respectful, progressive and world-class culture TARGET 6% TARGET 5% TARGET 13%

30 NEW ZEALAND RUGBY ANNUAL REPORT 30 NEW ZEALAND RUGBY OBITUARIES Norman Rangi Berryman All Blacks No. 976 (1998) Jerry Collins All Blacks No ( ) Maurice Gordon Graham All Blacks No. 609 (1960) John Hotop All Blacks No. 540 ( ) Died in Australia, 23 June Died in France, 5 June Died in Australia, 20 December Died in Hamilton, 30 August Jonah Tali Lomu All Blacks No. 941 ( ) Michael Craig Norgate New Zealand Rugby Board Member Sir Russell Hilton Pettigrew New Zealand Rugby President and Founder, New Zealand Rugby Foundation Chisholm Forbes Robson International referee Died in Auckland, 18 November Died in England, 7 July Died in Hawke s Bay, 20 March Died in Mt Maunganui, 15 August Te Whetu Werohia Tipiwai New Zealand Māori Rugby Board Member and Māori All Blacks Kaumātua Ian Neill Uttley All Blacks No. 634 (1963) Charles Arthur Woods All Blacks No. 551 ( ) Died in Hawke s Bay, 6 March Died in Hawke s Bay, 15 September Died in Southland, 7 October

31 NEW ZEALAND RUGBY ANNUAL REPORT 31 STEINLAGER RUGBY AWARDS WINNERS AND NOMINEES New Zealand Rugby Age Grade Player of the Year Winner: Akira Ioane (Auckland) Nominees: Alex Fidow (Wellington) and Charlie Gamble (Canterbury) Charles Monro Rugby Volunteer of the Year Winners: Tania Karaitiana and Vio Ugine (Wellington) Nominees: Robert Neil (Auckland) and Andrew Reilly (Manawatu) New Zealand Rugby Referee of the Year Winner: Glen Jackson (Bay of Plenty) Nominees: Jessica Beard (Counties Manukau) and Richard Kelly (Taranaki Rugby) Pink Batts Heartland Championship Player of the Year Winner: Lindsay Horrocks (Wanganui) Nominees: Eric Duff (Mid Canterbury) and Stephen Perofeta (Wanganui) New Zealand Rugby Women s Sevens Player of the Year Winner: Tyla Nathan-Wong (Auckland) Nominees: Sarah Goss (Manawatu) and Portia Woodman (Auckland) Richard Crawshaw Memorial Sevens Player of the Year Winner: Scott Curry (Bay of Plenty) Nominees: Rieko Ioane (Auckland) and Joe Webber (Waikato) Investec Super Rugby Player of the Year Winner: Lima Sopoaga (Highlanders) Nominees: James Broadhurst (Hurricanes) and Aaron Smith (Highlanders) ITM Cup Player of the Year Winner: George Moala (Auckland) Nominees: Dominic Bird (Canterbury) and Ardie Savea (Wellington) Tom French Memorial Māori Player of the Year Winner: Nehe Milner-Skudder (Ngāti Porou/Tapuika) (Manawatu) Nominees: Charlie Ngatai (Ngāti Porou/Te Whanau-ā- Apanui) (Taranaki) and Aaron Smith (Ngāti Kahungunu) (Manawatu) New Zealand Rugby Women s Player of the Year Winner: Kendra Cocksedge (Canterbury, Black Ferns) Nominees: Fiao o Fa amausili (Auckland, Black Ferns) and Linda Itunu (Auckland, Black Ferns) New Zealand Rugby Coach of the Year Winner: Steve Hansen Nominees: Jamie Joseph (Highlanders) and Scott Robertson (Canterbury and New Zealand Under 20) adidas Team of the Year Winner: All Blacks Nominees: Highlanders and New Zealand Under 20 Kelvin R Tremain Player of the Year Winner: Ma a Nonu (Wellington, Hurricanes, All Blacks) Nominees: Dan Carter (Canterbury Crusaders, All Blacks) Dane Coles (Wellington, Hurricanes, All Blacks) and Ben Smith (Otago, Highlanders and All Blacks) Steinlager Salver for an Outstanding Contribution to New Zealand Rugby Mike Eagle

32 NEW ZEALAND RUGBY ANNUAL REPORT 32 OTHER RECOGNITION World Rugby Awards Team of the Year Winner: All Blacks Player of the Year Winner: Daniel Carter Nominee: Julian Savea Women s Player of the Year Winner: Kendra Cocksedge Women s Sevens Player of the Year Winner: Portia Woodman Nominee: Sarah Goss Coach of the Year Nominee: Steve Hansen International Rugby Player s Try of the Year Winner: Julian Savea, All Blacks v France 2016 Halberg Awards Halberg Award Winner: All Blacks Team of the Year Winner: All Blacks Coach of the Year Winner: Steve Hansen Sportsman of the Year Nominee: Daniel Carter 2016 Laureus Awards Team of the Year Winner: All Blacks Comeback of the Year Winner: Daniel Carter 2016 NZ Sport and Recreation High Performance Campaign Winner: All Blacks win RWC 2016 New Zealander of the Year Winner: Richie McCaw New Zealand Royal Honours List Ordinary Member of the New Zealand Order (ONZ): Richie McCaw Officers of the New Zealand Order of Merit (ONZM): Daniel Carter and Gilbert Enoka Members of the New Zealand Order of Merit (MNZM): Mike Cron, Keven Mealamu, Ma a Nonu, Conrad Smith and Tony Woodcock 2016 UK Sponsorship Awards Rugby Union Sponsorship of the Decade Winner: AIG Best Business to Business Sponsorship Winner: AIG Breakthrough Player of the Year Winner: Nehe Milner-Skudder

33 ON-FIELD RESULTS NEW ZEALAND RUGBY ANNUAL REPORT 33 ALL BLACKS In Samoa 8 July All Blacks 25 Samoa 16, Apia The Investec Rugby Championship 17 July All Blacks 39 Argentina 18, Christchurch 25 July All Blacks 27 South Africa 20, Johannesburg 8 August Australia 27 All Blacks 19, Sydney Bledisloe Cup 15 August All Blacks 41 Australia 13, Auckland Rugby World Cup 20 September All Blacks 26 Argentina 16, London 25 September All Blacks 58 Namibia 14, London 2 October All Blacks 43 Georgia 10, Cardiff 9 October All Blacks 47 Tonga 9, Newcastle 17 October All Blacks 62 France 13, Cardiff (QF) 24 October All Blacks 20 South Africa 18, London (SF) 31 October All Blacks 34 Australia 17, London (F) Beauden Barrett (Taranaki, 8 Test caps in ), James Broadhurst (Wellington, 1), Sam Cane (Bay of Plenty, 9), Daniel Carter (Canterbury, 10), Dane Coles (Wellington, 9), Wyatt Crockett (Canterbury, 9), Ryan Crotty (Canterbury, 2), Israel Dagg (Hawke s Bay, 3), Hikawera Elliot (Counties Manukau, 1), Andrew Ellis (Canterbury, 2), Charlie Faumuina (Auckland, 6), Malakai Fekitoa (Auckland, 5), Ben Franks (Hawke s Bay, 6), Owen Franks (Canterbury, 11), Cory Jane (Wellington, 0), Jerome Kaino (Auckland, 11), Tawera Kerr-Barlow (Waikato, 5), Nepo Laulala (Canterbury, 4), Richie McCaw (Canterbury, 11), Keven Mealamu (Auckland, 9), Nehe Milner-Skudder (Manawatu, 8), Liam Messam (Waikato, 3), George Moala (Auckland, 1), Joe Moody (Canterbury, 3), Waisake Naholo (Auckland, 3), Charlie Ngatai (Waikato, 1), Ma a Nonu (Wellington, 9), TJ Perenara (Wellington, 6), Charles Piutau (Auckland, 3), Kieran Read (Canterbury, 12), Brodie Retallick (Bay of Plenty, 11), Luke Romano (Canterbury, 5), Julian Savea (Wellington, 8), Colin Slade (Canterbury, 4), Aaron Smith (Manawatu, 9), Ben Smith (Otago, 10), Conrad Smith (Wellington, 9), Lima Sopoaga (Wellington, 1), Codie Taylor (Canterbury, 4), Jeremy Thrush (Wellington, 1), Matt Todd (Canterbury, 1), Victor Vito (Wellington, 7), Brad Weber (Waikato, 1), Samuel Whitelock (Canterbury, 11), Sonny Bill Williams (Counties Manukau, 10), Tony Woodcock (North Harbour, 8). Coach: Steven Hansen Assistant Coach: Ian Foster Manager: Darren Shand Lindsay Horrocks of the New Zealand Heartland XV takes the ball in the tackle of an Australian Barbarian during their match in Levin.

34 NEW ZEALAND RUGBY ANNUAL REPORT 34 ON-FIELD RESULTS CONTINUED BLACK FERNS International Women s Rugby Series 27 June Black Ferns 40 Canada 22, Calgary 1 July Black Ferns 26 England 7, Red Deer 5 July Black Ferns 47 USA 14, Edmonton Chelsea Alley (Waikato, 3 Test caps in ), Eloise Blackwell (Auckland, 3), Kendra Cocksedge (Canterbury, 3), Kiritapu Demant (Auckland, 2), Fiao o Fa amausili (Auckland, 3), Charlene Halapua (Auckland, 3), Keri Hayden (Manawatu, 0), Honey Hireme (Waikato, 3), Linda Itunu (Auckland, 3), Emma Jensen (Auckland, 3), Lesley Ketu (Waikato, 3), Justine Lavea (Auckland, 3), Arihiana Marino (Counties Manukau, 0), Toka Natua (Waikato, 3), Aleisha Nelson (Auckland, 3), Te Kura Ngata- Aerengamate (Counties Manukau, 3), Angelene Sisifa (Otago, 3), Charmaine Smith (North Harbour, 3), Victoria Subritzky-Nafatali (Otago, 3) Sosoli Talawadua (Waikato, 0), Teresa Te Tamaki (Waikato, X), Janna Vaughan (Manawatu, 3), Stacey Waaka (Waikato, 3), Renee Wickliffe (Counties Manukau, 3), and Selica Winiata (Manawatu, 3). Coach: Glenn Moore Assistant Coach: Wesley Clarke, Reuben Samuels Manager: Gareth Duncan

35 NEW ZEALAND RUGBY ANNUAL REPORT 35 ON-FIELD RESULTS CONTINUED NEW ZEALAND UNDER 20 Oceania Rugby Under 20 Championship 2 May New Zealand 75 Japan 0, Gold Coast 5 May New Zealand 36 Samoa 14, Gold Coast 9 May New Zealand 46 Australia 29, Gold Coast World Rugby Under 20 Championship 2 June New Zealand 68 Scotland 10, Parma 6 June New Zealand 32 Argentina 29, Calvisano 10 June New Zealand 25 Ireland 3, Viadana 15 June New Zealand 45 France 7, Calvisano (SF) 20 June New Zealand 21 England 16, Cremono (F) Nathaniel Apa (Canterbury), Leni Apisai (Wellington), Teariki Ben-Nicholas (Wellington), Otere Black (Manawatu), James Blackwell (Wellington), George Bridge (Canterbury), Luke Campbell (Wellington), Geoffrey Cridge (Hawke s Bay), Hamish Dalzell (Canterbury), Mitchell Dunshea (Canterbury), Jonathan Fa auli (Canterbury), Tinoai Faiane (Auckland), Blake Gibson (Auckland), Jack Goodhue (Canterbury), Joshua Goodhue (Canterbury), Wesley Goosen (Wellington), Thomas Hill (Canterbury), Dillon Hunt (Otago), Mitchell Hunt (Auckland), Akira Ioane (Auckland), Mitchell Jacobson (Waikato), Mitchell Karpik (Auckland), Tau Koloamatangi (Waikato), Jamie Lane (Auckland), Luteru Laulala (Canterbury), Anton Lienert-Brown (Waikato), Harrison Levien (Waikato), Tevita Li (North Harbour), Steven Misa (Waikato), Atunaisa Moli (capt) (Waikato), Liam Polwart (Auckland), John Riccitelli (Otago), Aidan Ross (Bay of Plenty), Fletcher Smith (Otago), Henry Stowers (Wellington), Te Toiroa Tahuriorangi (Taranaki), Vincent Tavae-Aso (Auckland), Isileli Tu ungafasi Auckland), Sean Wainui (Taranaki). Coach: Scott Robertson Assistant Coach: Leon MacDonald, Tana Umaga Manager: Paul Galletta

36 NEW ZEALAND RUGBY ANNUAL REPORT 36 ON-FIELD RESULTS CONTINUED MĀORI ALL BLACKS 11 July Māori All Blacks 27 Fiji 26, Suva 18 July New Zealand Barbarians 34 Māori All Blacks 17, Auckland Kurt Baker (Taranaki, Ngāpuhi), Heiden Bedwell- Curtis (Manawatu, Ngāpuhi), Otere Black (Manawatu, Ngai Tuhoe / Te Whanau-ā-Apanui / Ngati Tuwharetoa), Shane Christie (Tasman, Te Atihaunui a Paparangi, Ngāti Kurawhatia), Mitchell Crosswell (Taranaki Ngāti Porou), Ash Dixon (Hawke s Bay Ngāti Tahinga), Elliot Dixon (Southland Ngāpuhi), Brendon Edmonds (Hawke s Bay Ngāti Kuhungunu), Jason Emery (Manawatu, Ngāti Haua / Ngāti Maniapoto), Chris Eves (Manawatu Waikato /Tainui), Jamison Gibson-Park (Taranaki, Ngāti Porou/Ngāi Tai), Josh Hohneck (Waikato Ngāti Whātua / Ngāti Manuhiri), Akira Ioane (Auckland, Te Whanau-ā-Apanui), Reiko Ioane (Auckland Te Whanau-ā-Apanui), Quentin MacDonald (Tasman Rangitane), Ben May (Wellington Ngāti Maniapoto), Damian McKenzie (Waikato, Ngāti Tuwharetoa), Marty McKenzie (Taranaki, Ngāti Tuwharetoa), Charlie Ngatai (Taranaki, Ngāti Porou / Te Whanau-ā-Apanui), Matt Proctor (Wellington Ngāi te Rangi/Ngāpuhi), Codey Rei (Taranaki, Nga Ruahine / Te Atiawa), Joe Royal (Bay of Plenty Te Arawa / Ngāti Whātua I Orakei), Jacob Skeen (Waikato, Ngāpuhi), Blade Thomson (Taranaki, Ngāpuhi), Hayden Triggs (Auckland, Ngāti Kahungunu), Sean Wainui (Taranaki, Ngai Tuhoe / Ngati Porou), Brad Weber (Waikato, Ngāti Porou), Joe Wheeler (Tasman, Ngāi Tahu). Coach: Colin Cooper Assistant Coach: Tabai Matson Manager: Tony Ward

37 NEW ZEALAND RUGBY ANNUAL REPORT 37 ON-FIELD RESULTS CONTINUED NEW ZEALAND HEARTLAND XV 7 November 10 November 13 November New Zealand Heartland XV 47 New Zealand Marist 42, Masterton Australian Barbarians 38 New Zealand Heartland XV 32, Levin Australian Barbarians 40 New Zealand Heartland XV 24, Wanganui Hayden Anderson (Thames Valley), Cole Baldwin (Wanganui), Ralph Darling (North Otago), Jackson Donlan (Mid Canterbury), Moss Doran (Thames Valley), Eric Duff (Mid Canterbury), Lance Easton (Thames Valley), Matthew Fetu (South Canterbury), James Goodger (Wairarapa Bush), Fraser Hammond (Wanganui), James Hemara (King Country), Lindsay Horrocks (Wanganui), Bryn Hudson (Wanganui), Tyrone Keith (Thames Valley), Lemi Masoe (North Otago), Tau Moeke (East Coast), Craig Moore (Buller), Stephen Perofeta (Wanganui), Tim Priest (Wairarapa Bush), Adaam Ross (Mid Canterbury) Peter Rowe (Wanganui), Kurt Simmonds (Wairarapa Bush), Timaru Tafa (South Canterbury), Michael Tambour (Horowhenua Kapiti), Zayn Tipping (King Country). Coach: Grant Keenan Assistant Coach: Mutu Ngarimu Manager: Chris Back

38 NEW ZEALAND RUGBY ANNUAL REPORT 38 ON-FIELD RESULTS CONTINUED NEW ZEALAND SCHOOLS 19 September 24 September 28 September 2 October New Zealand Schools 20 New Zealand Barbarian Schools 18, Palmerston North New Zealand Schools 62 Samoa Schools 3, Brisbane New Zealand Schools 23 Australian Barbarian Schools 22, Brisbane New Zealand Schools 32 Australia Schools 8, Brisbane Harrison Allan (St Andrew s College), Asafo Aumua (St Patrick s College, Silverstream), Joshua Buchan (Otago BHS), Thomas Christie (Shirley BHS), Caleb Clarke (Mt Albert Grammar), Wiseguy Faiane (Auckland Grammar), Alex Fidow (Scots College), Losi Filipo (St Patrick s College, Silverstream), Tom Florence (New Plymouth BHS), Liam Giltrap (Palmerston North), Kemara Hauiti-Parapara (Wellington College), Tim Hogan (Otago BHS), Brodie McAlister (Shirley BHS), Slade McDowall (Otago BHS), Joshua McKay (Christchurch BHS), Marino Mikaele-Tu u (Hastings BHS), Xavier Numia (St Patrick s College, Wellington), Raymond Nu u (St Andrew s College), Dalton Papali i (St Kentigern College), Benjamin Power (Hutt International Boys School), Sevuloni Reece (Hamilton BHS), Samuel Slade (Mt Albert Grammar), Samisoni Taukei aho (St Paul s Collegiate), Flynn Thomas (Southland BHS), William Tucker (St Bede s College), Peter Umaga-Jensen (Scots College), Thomas Umaga-Jensen (Scots College), To o (TJ) Vaega (Kelston BHS), Isaia Walker-Leawere (Gisborne BHS), Takaji Young-Yen (King s College). Coaches: Dave Hewett and Mark Ozich Manager: Nick Reid

39 NEW ZEALAND RUGBY ANNUAL REPORT 39 ON-FIELD RESULTS CONTINUED ALL BLACKS SEVENS HSBC Sevens World Series placing: 3rd Jordan Bunce (Manawatu), Dylan Collier (Waikato), Scott Curry (Manawatu), Ambrose Curtis (Wellington), Sam Dickson (Canterbury), DJ Forbes (Counties Manukau), Jack Goodhue (Northland), Reiko Ioane (Auckland), Gillies Kaka (Hawke s Bay), Antonio Kiri Kiri (Manawatu), Tim Mikkelson (Waikato), Declan O Donnell (Waikato), Lewis Ormond (Taranaki), Max Pearson (Wellington), Augustine Pulu (Counties Manukau), Lote Raikabula (Wellington), Teddy Stanaway (Bay of Plenty), Sherwin Stowers (Counties Manukau), Murphy Taramai (Wellington), Isaac Te Tamaki (Waikato), Sam Vaka (Counties Manukau), Beaudein Waaka (Taranaki), Regan Ware (Waikato), Joe Webber (Waikato). Coach: Gordon Tietjens Manager: Ross Everiss

40 NEW ZEALAND RUGBY ANNUAL REPORT 40 ON-FIELD RESULTS CONTINUED NEW ZEALAND WOMEN S SEVENS World Rugby Women s Sevens Series winners Oceania Sevens Champions Michaela Blyde (Taranaki), Kelly Brazier (Otago), Gayle Broughton (Taranaki), Sarah Goss (Manawatu), Honey Hireme (Waikato), Carla Hohepa (Waikato), Kayla McAlister (Auckland), Morgan Morrow (Bay of Plenty), Tyla Nathan-Wong (Auckland), Charlotte Scanlan (Auckland), Shiray Tane (Waikato), Alexis Tapsell (Bay of Plenty), Hazel Tubic (Counties Manukau), Ruby Tui (Canterbury), Jordon Webber (Waikato), Katarina Whata-Simpkins (Wellington), Niall Williams (Auckland), Selica Winita (Manawatu), Portia Woodman (Auckland). Coach: Sean Horan Manager: Jenelle Strickland

41 NEW ZEALAND RUGBY ANNUAL REPORT 41 ON-FIELD RESULTS CONTINUED INVESTEC SUPER RUGBY ITM CUP Final: Highlanders 21 Hurricanes 14, Wellington ITM Cup Premiership Final: Canterbury 25 Auckland 23, Christchurch Semifinals: Hurricanes 29 Brumbies 9, Wellington Highlanders 35 Waratahs 17, Sydney ITM Cup Premiership Semifinals: Auckland 44 Tasman 24, Auckland Canterbury 44 Taranaki 20, Christchurch Qualifiers: Highlanders 24 Chiefs 14, Dunedin Team Played Win Draw Loss F A BP4 BP7 Points Hurricanes Waratahs Stormers Highlanders Chiefs Brumbies Crusaders Lions Bulls Rebels Sharks Cheetahs Reds Blues Force Team Played Win Draw Loss F A BP4 BP7 Points Canterbury Auckland Tasman Taranaki Counties Manukau Waikato Manawatu ITM Cup Championship Final: Hawke s Bay 26 Wellington 25, Napier ITM Cup Championship Semifinals: Hawke s Bay 33 Bay of Plenty 26, Napier Wellington 34 Otago 14, Wellington Team Played Win Draw Loss F A BP4 BP7 Points Hawke s Bay Wellington Otago Bay of Plenty North Harbour Otago Bay of Plenty

42 NEW ZEALAND RUGBY ANNUAL REPORT 42 ON-FIELD RESULTS CONTINUED RANFURLY SHIELD PINK BATTS HEARTLAND CHAMPIONSHIP 9 July Hawke s Bay 58 Wairarapa Bush 7, Napier 16 July Hawke s Bay 50 Horowhenua Kapiti 16, Napier 23 July Hawke s Bay 57 Mid Canterbury 12, Napier 16 August Hawke s Bay 39 Northland 10, Napier 5 September Hawke s Bay 48 North Harbour 32, Napier 19 September Hawke s Bay 23 Bay of Plenty 17, Napier Meads Cup Final: Wanganui 28 South Canterbury 11, Timaru Meads Cup Semifinals: South Canterbury 25 Wairarapa Bush 21, Timaru Wanganui 26 Mid Canterbury 11, Ashburton Lochore Cup Final: King Country 47 North Otago 34, Te Kuiti Lochore Cup Semifinals: North Otago 57 Horowhenua Kapiti 12, Levin King Country 20 Buller 6, Westport 24 September Hawke s Bay 17 Auckland 12, Napier 9 October Waikato 36 Hawke s Bay 30, Napier Team Played Win Draw Loss F A BP4 BP7 Points South Canterbury Mid Canterbury Wanganui Wairarapa Bush Horowhenua Kapiti Buller King Country North Otago Thames Valley West Coast Poverty Bay East Coast * Waikato

43 NEW ZEALAND RUGBY ANNUAL REPORT 43 ON-FIELD RESULTS CONTINUED WOMEN S PROVINCIAL CHAMPIONSHIP BAYLEY S NATIONAL SEVENS Final: Auckland 39 Wellington 9, Napier Semifinals: Auckland 38 Waikato 12, Auckland Wellington 29 Counties Manukau 23, Wellington Team Played Win Draw Loss F A BP4 BP7 Points Auckland Wellington Counties Manukau Waikato Canterbury Otago Manawatu Men s Cup Final: Waikato 38 Wellington 19 Women s Cup Final: Auckland 29 Manawatu 14 JOCK HOBBS MEMORIAL NATIONAL UNDER 19 TOURNAMENT Graeme Mourie Cup for the Premiership Final: Canterbury 41 Waikato 35 Michael Jones Trophy for the Championship Final: Counties Manukau 32 Tasman 28 INTERNATIONAL REFEREES New Zealand referees who oversaw Tests, World Rugby Sevens tournament or World Rugby Under 20 Championship matches in were: Jessica Beard, Nick Briant, Chelsea Gurr, Glen Jackson, Richard Kelly, Chris Pollock Bay of Plenty Hawke s Bay

44 NEW ZEALAND RUGBY ANNUAL REPORT 44 FINANCIAL STATEMENTS GROUP STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December Income: Commercial income 91,255 87,135 Fixtures and tours income 4,346 16,257 Interest income 3,094 3,531 Other income 3 28,789 5,475 Foreign exchange gains 6,123 8,233 Equity accounted profit of associates Total income 3 133, ,806 Expenditure: Game development 16,856 15,866 Provincial Union grants 9,572 9,273 Representative teams 43,130 34,974 Competitions 56,503 51,816 Governance and financial 8,171 8,244 Interest expense Total expenditure 3 134, ,231 (Loss)/profit before Junior World Championship hosting and income tax (559) 575 Junior World Championship hosting related profit/(loss): Junior World Championship hosting income ,225 Junior World Championship hosting expenditure 3 (4,427) Junior World Championship hosting related profit/(loss): 96 (202) (Loss)/profit before income tax (463) 373 Income tax 4 (Loss)/profit after income tax (463) 373 Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Cash flow hedges: 21 Gains taken to equity 8,774 7,385 Transferred to profit or loss for the year (7,841) (7,295) Foreign currency translation reserve: Gains/(losses) taken to equity (81) Note FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Total other comprehensive income Total comprehensive income, net of tax The accompanying notes form part of these financial statements.

45 NEW ZEALAND RUGBY ANNUAL REPORT 45 GROUP BALANCE SHEET as at 31 December Current assets: Cash and cash equivalents 51,868 62,089 Trade and other receivables 8 48,911 38,773 Prepayments 2,134 2,941 Loans and advances 9 1,004 2,812 Other financial assets 10 7,939 8,215 Total current assets 111, ,830 Non-current assets: Term investments 7, Loans and advances Property, plant and equipment 11 2,402 2,402 Intangible assets 12 8,283 8,719 Investment in associates 14 2,270 1,172 Other financial assets 10 20,863 17,232 Total non-current assets 41,239 30,340 Total assets 153, ,170 Current liabilities: Trade and other payables 15 8,610 7,693 Income in advance 44,708 40,480 Provision for medical costs Player payment variation account Other financial liabilities 17 1, Total current liabilities 55,437 48,941 Non-current liabilities: Provision for medical costs 18 3,078 2,954 Benevolent and welfare fund 19 1,427 1,938 Income in advance 312 Other financial liabilities 17 1, Total non-current liabilities 6,236 5,310 Total liabilities 61,673 54,251 Equity: Cash flow hedge reserve 21 25,835 24,902 Foreign currency translation reserve 22 (90) (123) Retained earnings 23 65,677 66,140 Total equity 91,422 90,919 Total liabilities and equity 153, ,170 Note FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER For and on behalf of the Board B G IMPEY Chairman 25 February 2016 W W PETERS Director 25 February 2016 The accompanying notes form part of these financial statements.

46 NEW ZEALAND RUGBY ANNUAL REPORT 46 GROUP STATEMENT OF CHANGES IN EQUITY for the year ended 31 December Note Retained earnings Cash flow hedge reserve Foreign currency translation reserve Balance at 1 January 21,22,23 66,140 24,902 (123) 90,919 Total loss for the year 23 (463) (463) Total other comprehensive income for the year 21, Balance at 31 December 65,677 25,835 (90) 91,422 Total FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Balance at 1 January 21,22,23 65,767 24,812 (42) 90,537 Total profit for the year Total other comprehensive income for the year 21,22 90 (81) 9 Balance at 31 December 66,140 24,902 (123) 90,919 GROUP CASH FLOW STATEMENT for the year ended 31 December Cash flows from operating activities: Operating receipts 91, ,516 Interest received 3,576 3,034 Other income 28,789 5,475 Payments to suppliers and employees (128,515) (122,279) Net cash flow from operating activities 27 (4,324) (3,254) Cash flows from investing activities: (Purchase)/sale of term investments (6,690) 5,477 Investment in associates (750) Repayment of loans and advances 1,946 2,840 Purchase of property, plant and equipment (525) (288) Purchase of intangible assets (526) (418) Proceeds from sale of property, plant and equipment 4 Net cash flow from investing activities (6,541) 7,611 Net (decrease)/increase in cash held (10,865) 4,357 Effect of exchange rate change on foreign currency balances Cash at start of the year 62,089 57,661 Cash at end of the year 51,868 62,089 Note Represented by: Cash and cash equivalents 51,868 62,089 Cash at end of the year 51,868 62,089 The accompanying notes form part of these financial statements.

47 NEW ZEALAND RUGBY ANNUAL REPORT 47 PARENT STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December Income: Commercial income 91,255 87,135 Fixtures and tours income 4,346 16,257 Interest income 3,094 3,531 Other income 3 28,789 5,475 Foreign exchange gains 6,123 8,233 Total income 3 133, ,631 Expenditure: Game development 16,856 15,866 Provincial Union grants 9,572 9,273 Representative teams 43,130 34,974 Competitions 56,503 51,816 Governance and financial 8,171 8,244 Interest expense Total expenditure 3 134, ,231 (Loss)/profit before Junior World Championship hosting and income tax (674) 400 Junior World Championship hosting related profit/(loss): Junior World Championship hosting income ,225 Junior World Championship hosting expenditure 3 (4,427) Junior World Championship hosting related profit/(loss): 96 (202) (Loss)/profit before income tax (578) 198 Income tax 4 (Loss)/profit after income tax (578) 198 Note FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Cash flow hedges: 21 Gains taken to equity 8,774 7,385 Transferred to profit or loss for the year (7,841) (7,295) Total other comprehensive income Total comprehensive income, net of tax The accompanying notes form part of these financial statements.

48 NEW ZEALAND RUGBY ANNUAL REPORT 48 PARENT BALANCE SHEET as at 31 December Current assets: Cash and cash equivalents 51,868 62,089 Trade and other receivables 8 48,911 38,773 Prepayments 2,134 2,941 Loans and advances 9 1,004 2,812 Other financial assets 10 7,939 8,215 Total current assets 111, ,830 Non-current assets: Term investments 7, Loans and advances Property, plant and equipment 11 2,402 2,402 Intangible assets 12 8,283 8,719 Investment in associates 14 1, Other financial assets 10 20,863 17,232 Total non-current assets 40,912 30,161 Total assets 152, ,991 Current liabilities: Trade and other payables 15 8,610 7,693 Income in advance 44,708 40,480 Provision for medical costs Player payment variation account Other financial liabilities 17 1, Total current liabilities 55,437 48,941 Non-current liabilities: Provision for medical costs 18 3,078 2,954 Benevolent and welfare fund 19 1,427 1,938 Income in advance 312 Other financial liabilities 17 1, Total non-current liabilities 6,236 5,310 Total liabilities 61,673 54,251 Equity: Cash flow hedge reserve 21 25,835 24,902 Retained earnings 23 65,260 65,838 Total equity 91,095 90,740 Total liabilities and equity 152, ,991 Note FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER For and on behalf of the Board B G IMPEY Chairman 25 February 2016 W W PETERS Director 25 February 2016 The accompanying notes form part of these financial statements.

49 NEW ZEALAND RUGBY ANNUAL REPORT 49 PARENT STATEMENT OF CHANGES IN EQUITY for the year ended 31 December Note Retained earnings Cash flow hedge reserve Balance at 1 January 21,22,23 65,838 24,902 90,740 Total loss for the year 23 (578) (578) Total other comprehensive income for the year Balance at 31 December 65,260 25,835 91,095 Total FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Balance at 1 January 21,22,23 65,640 24,812 90,452 Total profit for the year Total other comprehensive income for the year Balance at 31 December 65,838 24,902 90,740 PARENT CASH FLOW STATEMENT for the year ended 31 December Cash flows from operating activities: Operating receipts 91, ,516 Interest received 3,576 3,034 Other income 28,789 5,475 Payments to suppliers and employees (128,515) (122,279) Net cash flow from operating activities 27 (4,324) (3,254) Cash flows from investing activities: (Purchase)/sale of term investments (6,690) 5,477 Investment in associates (750) Repayment of loans and advances 1,946 2,840 Purchase of property, plant and equipment (525) (288) Purchase of intangible assets (526) (418) Proceeds from sale of property, plant and equipment 4 Net cash flow from investing activities (6,541) 7,611 Net (decrease)/increase in cash held (10,865) 4,357 Effect of exchange rate change on foreign currency balances Cash at start of the year 62,089 57,661 Cash at end of the year 51,868 62,089 Note Represented by: Cash and cash equivalents 51,868 62,089 Cash at end of the year 51,868 62,089 The accompanying notes form part of these financial statements.

50 NEW ZEALAND RUGBY ANNUAL REPORT 50 NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 1 STATEMENT OF ACCOUNTING POLICIES STATEMENT OF COMPLIANCE New Zealand Rugby Union Incorporated ( NZRU or the Parent ) is an incorporated society registered in New Zealand under the Incorporated Societies Act 1908 and is domiciled at 100 Molesworth Street, Thorndon, Wellington, New Zealand. The principal activity of NZRU is to promote and administer rugby union in New Zealand. The Group consists of New Zealand Rugby Union Incorporated, its subsidiaries, associates and joint ventures. The Parent and Group financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand ( NZ GAAP ). They comply with New Zealand Equivalents to International Financial Reporting Standards ( NZ IFRS ) as appropriate for public benefit entities. BASIS OF PREPARATION The Group and Parent financial statements have been prepared on the basis of historical cost, except for the revaluation of certain financial instruments. Cost is based on the fair value of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES Preparation of financial statements in conformity with NZ IFRS requires judgements, estimates and assumptions to be made about the reported carrying values of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. If the revision affects current and future periods, it is reflected in those periods. KEY SOURCES OF ESTIMATION UNCERTAINTY The following is the key assumption concerning the future and other major sources of estimation uncertainty at 31 December that has a significant effect on the financial statements and has a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year: Critical estimates made by the NZRU include: Provision for Medical Costs: The NZRU base the carrying value of the provision on an annual independent actuarial valuation which requires the estimation of the effects of uncertain future events at the reporting date. These estimates involve assumptions about the number of outstanding open injury claims; incurred but not reported claims; the cost of future claims; and the cost of managing future claims. Refer Note 18 for further details. SPECIFIC ACCOUNTING POLICIES (A) BASIS OF CONSOLIDATION Subsidiaries Subsidiaries are those entities controlled, directly or indirectly, by the NZRU. The Group financial statements include the Parent entity, NZRU and its subsidiaries. All significant inter-entity transactions are eliminated on consolidation. In the Parent entity financial statements investments in subsidiaries are recognised at their cost, less any adjustment for impairment. A list of subsidiaries is disclosed in Note 13.

51 NEW ZEALAND RUGBY ANNUAL REPORT 51 1 STATEMENT OF ACCOUNTING POLICIES CONTINUED Associates Associates are entities in which the NZRU has significant influence, but not control, over the operating and financial policies. The financial statements of all associates, where material, have been reflected in the Group financial statements on an equity accounting basis which shows the Group s share of profits or losses in the Group Statement of Comprehensive Income and its share of post acquisition increases or decreases in net assets, in the Group Balance Sheet. The investment is carried at cost less impairment in the Parent Balance Sheet. A list of associates is disclosed in Note 14. (B) PROPERTY, PLANT AND EQUIPMENT The Group and Parent has four classes of property, plant and equipment, as disclosed below. Property, plant and equipment is initially recorded at cost. Cost includes the original purchase consideration and those costs directly attributable to bring the item of property, plant and equipment to the location and condition for its intended use. After recognition as an asset, property, plant and equipment is carried at cost less accumulated depreciation and impairment losses. When an item of property, plant and equipment is disposed of, any gain or loss is recognised in the Statement of Comprehensive Income and is calculated as the difference between the sale price and the carrying value of the item. Depreciation is provided on a straight line basis on all property, plant and equipment at depreciation rates calculated to allocate the cost less estimated residual value, over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The classes of property, plant and equipment and their depreciation periods are: Computer equipment Office equipment Office alterations and fixtures Coaching equipment 3 years 5 years 10 years 5 years (C) INTANGIBLE ASSETS Intangible assets comprise computer software and a contribution to the redevelopment of Eden Park. Computer software is stated at cost less accumulated amortisation and impairment losses. Amortisation is calculated on a straight line basis over the useful life of the asset (3 years). The estimated useful life, residual values and amortisation methods are reviewed at the end of each annual reporting period. The contribution to Eden Park is stated at cost less accumulated amortisation and impairment losses. Amortisation is calculated on a straight line basis over the term of the agreement between the NZRU, Eden Park Trust and the Auckland Rugby Football Union when the benefits will accrue to NZRU. The term of the agreement is 20 years and the benefits started accruing to the NZRU in 2011 at which time amortisation commenced. (D) IMPAIRMENT OF ASSETS At each reporting date, the Group and Parent reviews the carrying amounts of their non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cashgenerating unit to which the asset belongs is estimated. Recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. (E) LEASES The Parent leases certain office equipment and premises. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the profit or loss in equal instalments over the lease term. The Group has no finance leases. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

52 NEW ZEALAND RUGBY ANNUAL REPORT 52 1 STATEMENT OF ACCOUNTING POLICIES CONTINUED (F) TAXATION The NZRU is exempt from income tax as a promoter of amateur sport under section CW 46 of the Income Tax Act A subsidiary of the Group, New Zealand Rugby Promotions Limited is subject to income tax. For Subsidiaries, Associates and Joint Ventures: Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised. (G) INCOME RECOGNITION Broadcasting, Sponsorship and Licensing Income Broadcasting, sponsorship and licensing income is recognised over the period of the contract as the benefits are supplied by the Group under the contracts. Fixtures and Tours Fixtures and tours income is recognised in the period of the event. Government and Gaming Trust Grants Government and gaming trust grants are recognised as income when the conditions of those grants are met. Interest Income Interest income is recognised on an accruals basis using the effective interest method. (H) FOREIGN CURRENCY Functional and Presentation Currency The Group and Parent financial statements are presented in New Zealand dollars, which is the Parent and Group s functional and presentation currency. For the purpose of presenting the Group financial statements, the investment of the Group s foreign operations are expressed in New Zealand dollars using the average exchange rate for the profit and loss and the closing rate for balance sheet items at the end of the reporting period. Exchange differences are recognised in the Other Comprehensive Income and accumulated as a separate component of equity in the Group s foreign currency translation reserve. Such differences are reclassified from equity to profit or loss (as a reclassification adjustment) in the period in which the foreign operation is disposed of. Transactions and Balances Transactions in foreign currencies are converted at the New Zealand rate of exchange in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Foreign currency non-monetary assets and liabilities which are carried at cost are translated at the rates prevailing at the date when the cost was determined. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the profit or loss in the Statement of Comprehensive Income. (I) GOODS AND SERVICES TAX Income, expenditure and assets and liabilities are recognised net of the amount of Goods and Services Tax ( GST ), except for receivables and payables which are recognised inclusive of GST, where invoiced. (J) FINANCIAL INSTRUMENTS Cash and Cash Equivalents Cash and cash equivalents comprise short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

53 NEW ZEALAND RUGBY ANNUAL REPORT 53 1 STATEMENT OF ACCOUNTING POLICIES CONTINUED Trade Receivables, Loans and Other Receivables Trade receivables, loans and other receivables are measured at amortised cost less impairment. Appropriate allowances for estimated irrecoverable amounts are recognised in the profit or loss in the Statement of Comprehensive Income when there is objective evidence that an asset is impaired. Trade and Other Payables Trade payables and other payables are recognised when the Group and Parent becomes obliged to make future payments resulting from the purchase of goods and services. Subsequent to initial recognition, trade payables and other payables are recorded at amortised cost. Offsetting Assets and liabilities have not been offset except when offsetting is required or permitted by a Financial Reporting Standard. (K) DERIVATIVE FINANCIAL INSTRUMENTS The Parent enters into foreign currency forward exchange contracts to manage its exposure to foreign exchange rate risk. Further details of derivative financial instruments are disclosed in Note 24. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit or loss in the Statement of Comprehensive Income immediately unless the derivative is designated and effective as a hedging instrument, in which event, the timing of the recognition in the profit or loss in the Statement of Comprehensive Income depends on the nature of the hedge relationship. The Parent designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges). Cash Flow Hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in other comprehensive income. The gain or loss relating to any ineffective portion is recognised immediately in the profit or loss in the Statement of Comprehensive Income. Amounts recognised in equity are transferred to the profit or loss in the Statement of Comprehensive Income in the periods when the underlying hedged item is recognised in the profit or loss in the Statement of Comprehensive Income. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non- financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. Any cumulative gain or loss deferred in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the profit or loss in the Statement of Comprehensive Income. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was deferred in equity is recognised immediately in the profit or loss in the Statement of Comprehensive Income. Derivatives that do not qualify for Hedge Accounting Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the profit or loss in the Statement of Comprehensive Income. (L) ESTIMATION OF FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is determined on a hierarchical basis that reflects the significance of the inputs used in making the measurements. The fair value hierarchy is: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

54 NEW ZEALAND RUGBY ANNUAL REPORT 54 1 STATEMENT OF ACCOUNTING POLICIES CONTINUED Assumptions for valuation models are based on management s judgements and estimates. Changes in the assumptions used in these models and projections of future cash flows could affect the reported fair value of financial instruments. Refer to Note 24. (M) FINANCIAL ASSETS Financial assets are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned and are initially measured at fair value, plus transaction costs. Investments in funds are accounted for at fair value through the profit or loss in the Statement of Comprehensive Income. Interest revenue is separately recognised using the effective interest method, and the fair value gain or loss is adjusted accordingly, to take this into account. (N) PROVISION FOR MEDICAL COSTS The provision for medical costs is based on an annual independent actuarial valuation as the central estimate of the present value of expected future payments for claims. Refer Note 18 for principal assumptions. (O) PLAYER PAYMENT VARIATION ACCOUNT A Player Payment Variation Account is recognised for the difference between the players share of agreed revenue ( Player Generated Revenue ) earned during the term of the players Collective Employment Agreement and benefits provided to the players during the same year. Player costs are recognised in the year in which the Player Generated Revenue is earned. (P) BENEVOLENT AND WELFARE FUND The Benevolent and Welfare Fund represents funds unpaid at the reporting date attributable for the benefit of players employed under the players Collective Employment Agreement who are unable to play professional rugby or are suffering other hardship. The fund is payable to the New Zealand Rugby Players Association. (Q) EMPLOYEE ENTITLEMENTS Provision is made for benefits accruing to employees in respect of salaries and annual leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled within 12 months, are measured using the remuneration rate expected to apply at the time of settlement. (R) CASH FLOW STATEMENT Cash flows are inflows and outflows of cash and cash equivalents. Operating Activities are the principal income-producing activities of the entity and other activities that are not investing or financing activities. Investing Activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Financing Activities are activities that result in changes in the size and composition of the contributed equity and borrowings of the entity. (S) CHANGES IN ACCOUNTING POLICIES There have been no changes in accounting policies applied in the preparation of Parent and Group financial statements for the year ended 31 December. (T) STANDARDS APPROVED BUT NOT YET ADOPTED NZRU is a public benefit entity subject to the new four tier, multi-standards framework. The NZRU will not adopt the framework until the 31 December 2016 financial statements. The NZRU expects to adopt tier one under the framework but as yet has not done a detailed assessment of the impact of transition. 2 SEGMENT INFORMATION The Group as the promoter and administrator of rugby union in New Zealand operates in one industry segment and one geographical location. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

55 NEW ZEALAND RUGBY ANNUAL REPORT 55 3 (LOSS)/PROFIT FOR THE YEAR Note GROUP PARENT (A) Income Income from operations comprising of the following items: Income from the rendering of services 95, ,392 95, ,392 Interest income: Bank deposits 3,010 3,360 3,010 3,360 Related parties ,094 3,531 3,094 3,531 Other Income: Income from Government grants 5 3,227 3,209 3,227 3,209 Income from gaming trusts Rugby World Cup compensation grants from World Rugby 20,954 20,954 Other income 4,518 2,181 4,518 2,181 28,789 5,475 28,789 5,475 Foreign exchange gains 6,123 8,233 6,123 8,233 Equity accounted profit of associates Total income 133, , , ,631 (B) Expenditure Expenditure from the rendering of services 57,176 55,571 57,176 55,571 Finance costs: Bank interest Other interest Net movement in doubtful debts provision 20 (156) 2 (156) 2 Write-off to bad debts 20 (153) (22) (153) (22) Movement in provision for medical costs Depreciation of property, plant and equipment Amortisation of intangible assets Operating lease rental expenses 1,086 1,149 1,086 1,149 Employee benefits 73,217 60,897 73,217 60,897 Defined contribution plan expenses 1,449 1,151 1,449 1,151 Total expenditure 134, , , ,231 (C) Junior World Championship (JWC) hosting Income from the rendering of services 2,872 2,872 Income from Government grants , ,353 Total JWC hosting income 96 4, ,225 Expenditure from the rendering of services 4,427 4,427 Total JWC hosting expenditure 4,427 4,427 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

56 NEW ZEALAND RUGBY ANNUAL REPORT 56 4 INCOME TAX GROUP Income tax: (Loss)/profit before income tax (463) 373 Prima facie 28% (130) 104 Tax effect of permanent differences (exempt activities) 130 (104) Benefit of tax losses not previously recognised Income tax expense FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER The Group has accumulated tax losses of $5,225,000 (: $5,225,000) available to be carried forward and offset against future assessable income. The $1,463,000 (: $1,463,000) future tax benefit of these losses has not been recognised as it is not probable that they will be realised. There was no tax effect of other temporary differences on the result (: Nil). The NZRU is exempt from income tax under section CW 46 of the Income Tax Act Consequently the Parent has no income tax expense reported in the Statement of Comprehensive Income. Imputation Credits Imputation credits are not disclosed as the Parent has no shareholders able to utilise such credits. 5 INCOME FROM GOVERNMENT AND GAMING TRUST GRANTS GROUP & PARENT Income from Government grants: Accident Compensation Corporation High Performance Sport New Zealand 2,310 2,192 Ministry of Business, Innovation and Employment 96 1,353 Sport New Zealand ,323 4,562 Income from gaming trust grants: New Zealand Community Trust The Parent received funding during the year from Government Grants and Community Trusts towards the following activities: Accident Compensation Corporation ( ACC ): RugbySmart An injury prevention and peak performance programme developed jointly by the NZRU and ACC. High Performance Sport New Zealand: Sevens Rugby Funding was provided by High Performance Sport New Zealand to support the programmes of the All Blacks Sevens and New Zealand Women s Sevens teams; Prime Minister s Scholarships Funding to support professional development activities for high performance coaches, other team management and referees;

57 NEW ZEALAND RUGBY ANNUAL REPORT 57 5 INCOME FROM GOVERNMENT AND GAMING TRUST GRANTS CONTINUED Coach Accelerator Programme Funding received due to the inclusion of high performance rugby coaches in the three-year programme for elite coaches to resource their on-going development requirements as part of the programme; and Pathway to Podium Investment to support a Sevens coaches workshop designed to better prepare athletes for a high performance environment. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Ministry of Business, Innovation and Employment: Junior World Championship Funding was provided to support the hosting of the IRB Junior World Championship tournament held in Auckland in June. Sport New Zealand: Community Rugby Bulk funding towards agreed community rugby targets; and Women s Rugby Development Officer A Women s Rugby Development Officer in the wider-auckland area. New Zealand Community Trust: Rippa Rugby Championship A nationwide Rippa Rugby tournament for primary school teams which culminated in a Rippa Rugby Championship for the top 20 teams held in Wellington. 6 KEY MANAGEMENT PERSONNEL COMPENSATION GROUP & PARENT Compensation: Short-term employee benefits 3,369 2,876 Total key management personnel compensation 3,369 2,876 Directors fees paid or payable to Directors for services as a Director during the year totalled $451,000 (: $377,000) and were paid as follows: Total Mr B. G. Impey Chairman 93 Mr B. L. Cameron Director retired April 12 Mr G. J. Cooney Director 47 Mr R. P. Dellabarca Director appointed April 31 Mr A. J. Golightly Director 43 Mr R. J. Hunt Director retired March 10 Mr P. N. Kean Director 47 Mr J. S. Mitchell Director 47 Mr W. W. Peters Director 47 Mr M. P. Robinson Director 43 Mr G. K. Wahlstrom Director appointed April 31 The balance of Directors fees outstanding at 31 December was $122,500 (: $95,000).

58 NEW ZEALAND RUGBY ANNUAL REPORT 58 7 REMUNERATION OF AUDITOR GROUP & PARENT Audit of the financial statements Non-audit services 9 7 Total remuneration of auditor FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 8 TRADE AND OTHER RECEIVABLES GROUP & PARENT Trade receivables 43,753 34,076 Trade receivables accruals 4,875 4,628 Provision for doubtful debts 20 (48) (7) 48,580 38,697 Other receivables Total trade and other receivables 48,911 38,773 Note Trade receivables are non-interest bearing and generally on monthly terms. An allowance of $48,000 (: $7,000) has been made for estimated irrecoverable trade receivables. The increase in the allowance of $41,000 in the Group and Parent is split between a write-off to bad debts of $3,000, an increase in the allowance of $48,000 which was recognised in the profit or loss for the current financial year and a reduction in the provision of $4,000. Included in the Group and Parent trade receivables are debtors with a carrying value of $320,000 (: $235,000) which are past due at 31 December for which the Group has not provided as there has not been any significant change in credit quality and the amounts are still considered recoverable. GROUP & PARENT Ageing of past due but not impaired trade receivables: days days days Total past due but not impaired trade receivables There is nothing to indicate that there has been a decline in the credit worthiness of receivables that are neither past due nor impaired.

59 NEW ZEALAND RUGBY ANNUAL REPORT 59 9 LOANS AND ADVANCES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER GROUP & PARENT Current portion: Provincial Unions Super Rugby clubs 109 SANZAR Europe s.a.r.l. 52 2,407 Provision for doubtful debts 20 (109) Total current loans and advances 1,004 2,812 Non-current portion: Provincial Unions Super Rugby clubs 241 SANZAR Europe s.a.r.l. Provision for doubtful debts 20 (241) Total non-current loans and advances Total loans and advances 1,212 3,104 Note An allowance of Nil (: $350,000) has been made for estimated irrecoverable loans and advances. 10 OTHER FINANCIAL ASSETS GROUP & PARENT Foreign currency forward contracts 28,802 25,447 Total other financial assets 28,802 25,447 Current 7,939 8,215 Non-current 20,863 17,232 Total other financial assets 28,802 25,447

60 NEW ZEALAND RUGBY ANNUAL REPORT PROPERTY, PLANT AND EQUIPMENT GROUP & PARENT Computer equipment Office equipment Office alterations and fixtures Coaching equipment Gross carrying amount: Balance at 1 January , ,271 Additions Disposals (2) (2) Balance at 31 December 1, , ,557 Additions Disposals (721) (335) (46) (84) (1,186) Balance at 31 December , ,896 Accumulated depreciation: Balance at 1 January (779) (504) (228) (254) (1,765) Disposals 1 1 Depreciation expense (94) (3) (242) (52) (391) Balance at 31 December (873) (507) (470) (305) (2,155) Disposals ,166 Depreciation expense (177) (3) (246) (79) (505) Balance at 31 December (331) (175) (688) (300) (1,494) Net book value: Balance at 1 January , ,506 Balance at 31 December , ,402 Balance at 31 December , ,402 Total FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER At 31 December there were $74,000 of capital commitments (: $3,000).

61 NEW ZEALAND RUGBY ANNUAL REPORT INTANGIBLE ASSETS GROUP & PARENT Gross carrying amount: Contribution to Eden Park Computer software Balance at 1 January 10,000 2,523 12,523 Additions Disposals (14) (14) Balance at 31 December 10,000 2,927 12,927 Additions Disposals (1,090) (1,090) Balance at 31 December 10,000 2,363 12,363 Accumulated amortisation: Balance at 1 January (1,500) (1,811) (3,311) Disposals 8 8 Amortisation expense (500) (405) (905) Balance at 31 December (2,000) (2,208) (4,208) Disposals 1,089 1,089 Amortisation expense (500) (461) (961) Balance at 31 December (2,500) (1,580) (4,080) Net Book Value: Balance at 1 January 8, ,212 Balance at 31 December 8, ,719 Balance at 31 December 7, ,283 Total FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 13 SUBSIDIARIES Country of incorporation % owned % owned Subsidiaries: New Zealand Rugby Promotions Limited New Zealand 100% 100% Computerised Match Ticketing Limited New Zealand 100% 100% All Blacks Legacy Fund Limited New Zealand 100% 100% New Zealand Rugby Promotions Limited and Computerised Match Ticketing Limited have a balance date of 31 December. All Blacks Legacy Fund Limited has a balance date of 31 March. All subsidiaries are non-trading. The Balance Sheet and results of these entities have not been consolidated as there is no impact on the Group financial statements.

62 NEW ZEALAND RUGBY ANNUAL REPORT INVESTMENT IN ASSOCIATES Country of incorporation % owned % owned Associates: SANZAR Pty Limited Australia 33% 33% SANZAR Europe s.a.r.l. Luxembourg 33% 33% Highlanders Rugby Club Limited Partnership New Zealand 10% n/a All Blacks Experience GP Limited New Zealand 50% n/a FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER SANZAR Pty Limited and SANZAR Europe s.a.r.l. have a balance date of 31 December. Highlanders Rugby Club Limited Partnership has a balance date of 31 August. All Blacks Experience GP Limited has a balance date of 31 March. SANZAR Pty Limited acts as the agent for the SANZAR joint venture which promotes and administers certain rugby tournaments and the associated broadcasting rights. SANZAR Europe s.a.r.l. is a licensing vehicle to facilitate the sale of broadcasting rights into European markets. Highlanders Rugby Club Limited Partnership owns the license for the Highlanders Investec Super Rugby team. All Blacks Experience GP Limited is a new interactive tourism attraction being built in Auckland to showcase the All Blacks and the game of rugby union in New Zealand. GROUP PARENT Carrying value of associates: Carrying value at beginning of the year 1,172 1, Investment/(share release) Share of net profit for the year Change in translation of foreign currency investment 33 (81) Total investments in associates 2,270 1,172 1, NZRU s share of contingent liabilities, capital commitments or other commitments contracted for at 31 December is Nil (: Nil). NZRU has committed to provide capital funding of $3,750,000 to All Blacks Experience GP Limited of which $750,000 has been paid in the year ended 31 December. The financial results of SANZAR Pty Limited and SANZAR Europe s.a.r.l. have been accounted for using the equity method in these financial statements. The results above incorporate the results of each associate for the year ended 31 December.

63 NEW ZEALAND RUGBY ANNUAL REPORT INVESTMENT IN ASSOCIATES CONTINUED The following table summaries the total aggregate reported balances of all associate entities included in the Group: FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER GROUP Current assets 24,508 6,798 Non-current assets 1,461 7,272 Total assets 25,969 14,070 Current liabilities 23,579 3,338 Non-current liabilities 192 7,217 Total liabilities 23,771 10,555 Net assets 2,198 3,515 Income 27,589 12,560 Net profit Group's share of profit of associates TRADE AND OTHER PAYABLES GROUP & PARENT Trade payables Employee entitlements 3,262 3,284 Goods and service tax payable 1, Other payables and accruals 3,332 3,172 Total trade and other payables 8,610 7, PLAYER PAYMENT VARIATION ACCOUNT Under the players Collective Employment Agreement 36.56% (: 36.56%) of Player Generated Revenue recognised during the year is set aside and applied for the benefit of players contracted under this agreement. Where payments made to players during the term of the agreement differ from the players share of Player Generated Revenue, the difference is recognised in the Balance Sheet. The current players Collective Employment Agreement expired on 31 December and continues in force for 12 months by operation of law. Under the terms of the Collective Employment Agreement, the player payment variation account balance as at 31 December is carried forward into GROUP & PARENT Carrying value of player payment variation account: Carrying value at beginning of the year Movement in player payment variation account (93) (149) Total player payment variation account

64 NEW ZEALAND RUGBY ANNUAL REPORT OTHER FINANCIAL LIABILITIES GROUP & PARENT Foreign currency forward contracts 2, Total other financial liabilities 2, FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Current 1, Non-current 1, Total other financial liabilities 2, PROVISION FOR MEDICAL COSTS The NZRU provides injury and illness benefits to employees and players. The provision is based on NZRU s obligations under the ACC Partnership Programme, split between short-term open claims and long-term and reopened claims. Due to NZRU Board approving to move from the ACC Full-Self Cover plan to the ACC Partnership Discount Plan from 1 April, the long-term provision only relates to work-related injuries incurred prior to this date. The NZRU is an accredited employer under the ACC Partnership Programme. Whilst this limits the levy payable to ACC, the NZRU remains liable for all medical costs and some income costs for any future work-related injury. In regards to the cover years pre 1 April the NZRU is subject to the insurance cover provided by ACC, liable for the cost of all future claims. With effect from 1 April, the terms of the cover have changed and been increased such that the NZRU s future liability is limited to the cost of claims arising in the 2 years following the cover year in which the claim occurred. A provision is made for liabilities for short-term open claims and long-term and reopened claims that extend beyond the end of the financial year. The provision for medical and income costs is based on an annual independent actuarial valuation prepared by Mark Weaver (FIAA, FNZSA), Fellow of the New Zealand Society of Actuaries of Melville Jessup Weaver, Consulting Actuaries. The Actuary has confirmed that the data provided by the NZRU was sufficient for the purposes of their report. The Bornheutter-Fergusson ( BF ) method is used as the methodology for the short-term open claims provision. The BF method uses the weighted average of past claims development applied to an estimate of the ultimate claims costs to project future claims development. The estimated ultimate claims costs are derived as a percentage of liable earnings based on past NZRU claims experience. The graduated weighted average BF development factors were derived from the NZRU s own past payments pattern. The principal assumptions used by the Actuary, Mark Weaver (FIAA, FNZSA) were: The assumed loss ratio of 3 percent of liable earnings was determined by considering the observed loss ratios for developed loss quarters; The projected future payments were discounted for the time value of money based on secondary market Government bond yields as at 31 December. The methodology for long-term and reopened claims has been developed using data based in part on studies of football players in the United Kingdom as well as current New Zealand market information regarding medical and wages costs. The provision takes into account the specific characteristics of the NZRU player portfolio via the following assumptions:

65 NEW ZEALAND RUGBY ANNUAL REPORT PROVISION FOR MEDICAL COSTS CONTINUED (i) The average playing life for Super Rugby, Sevens, Women s Sevens and wider training group players is between 4 and 7 years; (ii) Probability of injury depending on whether the player is on a Super Rugby, Sevens, Women s Sevens or wider training group contracted is estimated to be between 20% to 50%. The principal assumptions used above to calculate the provision for the potential long-term and reopened claims are then discounted by a factor of 50% to reflect the uncertainty of the percentage of players who will require an operation and elect to have one, and the apportionment of costs to NZRU. The actuarial calculation is a central estimate of the present value of expected future payments for claims and consistent with the prior year a prudential margin liability has not been included in the calculation as the actuary has determined that an additional risk margin is not required. The NZRU will remain in the ACC Partnership Programme for the foreseeable future. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER GROUP & PARENT Carrying value of provision: Carrying value at beginning of the year 3,425 3,296 Payments made during the year (399) (503) Revaluation of provision Outstanding costs incurred in current year Total provision for medical costs 3,572 3,425 Current Non-current 3,078 2,954 Total provision for medical costs 3,572 3, BENEVOLENT AND WELFARE FUND The Benevolent and Welfare Fund was established in conjunction with the NZRPA in 2006 in accordance with the players Collective Employment Agreement. The funds allocated by the NZRU together with the investment returns are payable for the benefit of the players. The purpose of the fund is to provide payments to players employed under the players Collective Employment Agreement who are no longer able to play professional rugby due to sickness, injury, accident or death or to players who are suffering hardship. The balance of $1,427,000 (: $1,938,000) which is held in cash or term deposits, classified as Cash and Cash Equivalents on the Group and Parent Balance Sheet, is held solely for the purpose of meeting the NZRU s obligations for the Benevolent and Welfare Fund.

66 NEW ZEALAND RUGBY ANNUAL REPORT PROVISION FOR DOUBTFUL DEBTS GROUP & PARENT Carrying value of provision: Carrying value at beginning of the year Increase in provision 48 7 Decrease in provision (204) (5) Write-off to bad debts (153) (22) Total provision for doubtful debts FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Trade and other receivables 48 7 Loans and advances 350 Total provision for doubtful debts CASH FLOW HEDGE RESERVE GROUP & PARENT Balance at beginning of year 24,902 24,812 Gains on cash flow hedges taken to equity 8,774 7,385 Transferred to profit or loss for the period (7,841) (7,295) Total cash flow hedge reserve 25,835 24,902 The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in foreign exchange gains or losses in the Statement of Comprehensive Income when the hedged transaction impacts the profit or loss, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy. The cash flows will occur over the period 2016 to Refer to the maturity table in Note 24 for the expected maturities of foreign exchange contracts. The cash flow hedge reserve of $25,835,000 (: $24,902,000) represents the unrealised favourable variance between the contracted rate and the market rate of unexpired contracts as at 31 December. 22 FOREIGN CURRENCY TRANSLATION RESERVE GROUP & PARENT Balance at beginning of the year (123) (42) Gain/(loss) arising on translation of foreign operations 33 (81) Total foreign currency translation reserve (90) (123) Exchange differences relating to the translation from the functional currency of the Group s foreign associates into New Zealand dollars are bought to account by entries made directly to the foreign currency translation reserve.

67 NEW ZEALAND RUGBY ANNUAL REPORT RETAINED EARNINGS GROUP PARENT Balance at beginning of the year 66,140 65,767 65,838 65,640 Net (loss)/profit for the year (463) 373 (578) 198 Total retained earnings 65,677 66,140 65,260 65,838 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 24 FINANCIAL INSTRUMENTS FINANCIAL RISK MANAGEMENT OBJECTIVES The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The use of financial derivatives is governed by the Group s policies approved by the Board of Directors, which provide written principles on the use of financial derivatives. Compliance with policies and exposure limits is reviewed on a regular basis. The Group s operations expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group enters into forward foreign exchange rate contracts to hedge the exchange rate risk arising from revenue and expense streams denominated in foreign currencies. SIGNIFICANT ACCOUNTING POLICIES Details of the significant accounting policies and methods adopted, including the criteria for recognition, and the basis of measurement applied in respect of each class of financial asset and financial liability, are disclosed in Note 1 to the financial statements. FAIR VALUE ASSUMPTIONS Cash and cash equivalents, trade and other receivables, term investments, loans and advances, other financial assets, trade and other payables, other financial liabilities and the Benevolent and Welfare Fund are either fair valued or approximate fair value on the Balance Sheet. The fair value for assets at amortised cost (including cash, trade and other receivables, loans and advances, trade and other payables and the Benevolent and Welfare Fund) is determined by using discounted cash flow models incorporating market observable data for similar instruments. The fair value of other financial assets and liabilities is also determined using discounted cash flow models incorporating market observable data for similar instruments. Forward foreign exchange contracts are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted exchange rates. Fair value measurements recognised in the Balance Sheet Under NZ IFRS 7 financial instruments that are measured subsequent to initial recognition at fair value, are grouped into Levels 1 to 3 based on the degree to which the fair value is observable. All financial instruments recognised on NZRU s balance sheet at fair value have been valued within level 2 of the valuation methodology hierarchy. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended 31 December (: Nil). FOREIGN CURRENCY RISK MANAGEMENT The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

68 NEW ZEALAND RUGBY ANNUAL REPORT FINANCIAL INSTRUMENTS CONTINUED The Group held the following New Zealand dollar equivalent monetary assets and liabilities which are denominated in foreign currencies at balance date: GROUP & PARENT Assets Euros 22,844 14,119 United States dollars 35,495 11,491 Pounds sterling 2, Japanese yen 134 Australian dollars 990 2,431 Liabilities Euros United States dollars Pounds sterling Forward Foreign Exchange Contracts It is the policy of Group to enter into forward foreign exchange contracts to cover specific foreign currency receipts when certain criteria are met. Average exchange rate Foreign currency Contract value Fair value Outstanding contracts FC 000 FC 000 Sell US dollars: Less than 1 year ,506 18,387 87,095 25, , years ,616 12,100 59,097 16, years ,710 11,290 55,302 15,547 2, years ,867 49,856 1, years ,950 50,697 1,386 Sell euros: Less than 1 year ,415 8,758 18,665 20,775 5,186 7, years ,750 7,875 18,007 17,798 5,016 4, years ,325 7,750 17,430 18,007 4,558 4, years ,975 6,975 17,334 16,858 4,440 3, years ,975 17,334 3,750 Sell pound sterling: Less than 1 year , (60) 1 2 years ,800 4,528 19,667 9,117 (291) 2 3 years , years , years ,800 6,587 1 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER All foreign exchange contracts are designated as cash flow hedges and relate to the Parent entity.

69 NEW ZEALAND RUGBY ANNUAL REPORT FINANCIAL INSTRUMENTS CONTINUED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER INTEREST RATE RISK MANAGEMENT Interest rate risk is the risk that the value of the Group s assets will fluctuate due to the changes in market interest rates. The Group is exposed to interest rate risk primarily through its cash balances, loans and advances and investments. The interest reset date for cash and cash equivalents is less than 1 year. The interest reset date for loans and advances is the same as the contractual maturity dates. Maturity Profile The following tables details the Group s exposure to interest rate and liquidity risk. These tables are based on an analysis of the contractual undiscounted cash flows based on contractual maturity dates. GROUP & PARENT Weighted average effective interest % < 1 Year 1 2 Years Fixed maturity dates Financial assets: Cash and cash equivalents 3.54% 54,104 54,104 Term investments 4.23% 7,783 7,783 Trade and other receivables 48,911 48,911 Loans and advances 3.25% 1, ,251 Other financial assets 7,988 7,332 7,037 6,779 1,364 30,500 Total financial assets 112,039 15,201 7,123 6,822 1, ,549 Financial liabilities: Trade and other payables 8,610 8,610 Benevolent and welfare fund 2.00% 1,456 1,456 Player payment variation account Other financial liabilities 2, ,050 Total financial liabilities 12, , Years 3 4 Years 4 5 Years 5 + Years Years

70 NEW ZEALAND RUGBY ANNUAL REPORT FINANCIAL INSTRUMENTS CONTINUED GROUP & PARENT Weighted average effective interest % < 1 Year 1 2 Years Fixed maturity dates Financial assets: Cash and cash equivalents 4.41% 62,089 62,089 Term investments 3.60% Trade and other receivables 38,773 38,773 Loans and advances 3.16% 2, ,104 Other financial assets 8,267 5,130 4,987 4,503 4,437 27,324 Total financial assets 111,941 5,736 5,070 4,586 4, ,813 Financial liabilities: Trade and other payables 7,693 7,693 Benevolent and welfare fund 3.00% 1,938 1,938 Player payment variation account Other financial liabilities Total financial liabilities 9, ,379 CATEGORISATION OF FINANCIAL ASSETS AND LIABILITIES GROUP & PARENT Financial assets: Cash, term investments, loans and receivables at amortised cost 109, ,489 Other financial assets foreign currency forward contracts/cash flow hedges 28,802 25,447 Total financial assets 138, ,936 Financial liabilities: Trade and other payables at amortised cost 8,610 7,693 Benevolent and welfare fund at amortised cost 1,456 1,938 Player payment variation account at amortised cost Other financial liabilities at fair value through profit or loss 2, Total financial liabilities 13,110 10, Years 3 4 Years 4 5 Years 5 + Years Total FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

71 NEW ZEALAND RUGBY ANNUAL REPORT FINANCIAL INSTRUMENTS CONTINUED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER CREDIT RISK MANAGEMENT Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. Financial instruments which potentially subject the Group to credit risk consist principally of bank balances, accounts receivable, other receivables, loans and advances, other financial assets and derivative financial instruments. The Group has a credit policy which is used to manage its exposure to credit risk. Reputable financial institutions are used for investing and cash handling purposes. No collateral is required on these financial instruments. The maximum credit risk exposure equates to the Balance Sheet position. LIQUIDITY RISK MANAGEMENT Liquidity risk is the risk that the Group may be unable to meet its financial obligations as they fall due. The Group manages this risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows matching the maturity profiles of financial assets and liabilities. CAPITAL RISK MANAGEMENT The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern. The capital structure comprises of reserves (Notes 21 and 22) and retained earnings (Note 23), which includes cash and other financial instruments. The Board reviews the capital structure annually whilst updating the Group s Investment Policy. The Group s overall strategy remains unchanged from the prior year. SENSITIVITY ANALYSIS A sensitivity analysis has been performed based upon the financial instrument balances as classified in the maturity profile table. The sensitivity analysis calculates the impact on the Group and Parent reported profit or loss and equity if there was a deviation in either the interest rate by +/ 100 basis points or the exchange rate by +/ 10%. GROUP & PARENT Interest rate Exchange rate Impact on profit +/ 100 bps / 10% 4,258 4,697 Impact on equity +/ 100 bps / 10% 39,834 21, OPERATING LEASE COMMITMENTS GROUP & PARENT Not later than one year Later than one year and not later than two years Later than two years and not later than five years 1,830 1,923 Later than five years 4,218 4,820 Total operating lease commitments 7,681 8,175

72 NEW ZEALAND RUGBY ANNUAL REPORT CONTINGENT LIABILITIES The Group had no contingent liabilities as at 31 December (: Nil). FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 27 RECONCILIATION OF NET PROFIT AFTER TAX WITH NET CASH FLOW FROM OPERATING ACTIVITIES GROUP Net (loss)/profit after income tax (463) 373 Items classified as investing activities Add/(deduct) non-cash items: Depreciation Amortisation Movement in doubtful debts provision (156) 2 Write-off to bad debts (153) (22) Share of associate profit (115) (175) Foreign exchange losses (699) 124 Net Income recognised directly in equity ,276 1,306 Movement in working capital: Decrease/(increase) in trade receivables (9,636) 2,252 Decrease/(increase) in prepayments 807 (1,982) Decrease/(increase) in other financial assets (3,355) 814 Decrease/(increase) in other receivables (502) (743) Increase/(decrease) in trade payables (53) 375 Increase/(decrease) in provisions and player payment account (457) 289 Increase/(decrease) in other financial liabilities 2,422 (1,027) Increase/(decrease) in other payables 970 (814) Increase/(decrease) in income in advance 4,541 (4,606) (5,263) (5,442) Net cash flow from operating activities (4,324) (3,254)

73 NEW ZEALAND RUGBY ANNUAL REPORT RECONCILIATION OF NET PROFIT AFTER TAX WITH NET CASH FLOW FROM OPERATING ACTIVITIES CONTINUED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER PARENT Net (loss)/profit after income tax (578) 198 Items classified as investing activities Add/(deduct) non-cash items: Depreciation Amortisation Movement in doubtful debts provision (156) 2 Write-off to bad debts (153) (22) Foreign exchange losses (699) 124 Net Income recognised directly in equity ,391 1,481 Movement in working capital: Decrease/(increase) in trade receivables (9,636) 2,252 Decrease/(increase) in prepayments 807 (1,982) Decrease/(increase) in other financial assets (3,355) 814 Decrease/(increase) in other receivables (502) (743) Increase/(decrease) in trade payables (53) 375 Increase/(decrease) in provisions and player payment account (457) 289 Increase/(decrease) in other financial liabilities 2,422 (1,027) Increase/(decrease) in other payables 970 (814) Increase/(decrease) in income in advance 4,541 (4,606) (5,263) (5,442) Net cash flow from operating activities (4,324) (3,254) 28 TRANSACTIONS WITH RELATED PARTIES PROVINCIAL UNIONS AND SUPER RUGBY ENTITIES During the year the Group paid grants to the Provincial Unions of $9,572,000 (: $9,273,000) in accordance with the criteria set out in the Provincial Union Funding Review. In addition the Group provided funding to Provincial Unions and Super Rugby entities of $12,475,000 (: $12,955,000) for hosting of All Black test matches and other specific Game Development and Competition initiatives. The Group made a loan to the Waikato Rugby Union of $550,000 (: $254,000) during the year. The Group received $87,000 (: $683,000) repayments of loans and advances from rugby Provincial Unions and Super Rugby clubs. The Group charged interest of $35,000 (: $64,000) during the year on all loans to Provincial Unions and Super Rugby clubs. The Group wrote-off $150,000 (: Nil) of loans provided to the Highlanders Super Rugby club and converted $200,000 (: Nil) of loans into equity in the Highlanders Rugby Club Limited Partnership. The balances outstanding of loans and advances at the end of the year are stated in Note 9 to these financial statements.

74 NEW ZEALAND RUGBY ANNUAL REPORT 74 ASSOCIATE MEMBERS During the year the Group paid grants or paid for services with the following Associate Members: New Zealand Deaf Rugby Football Union $15,000 (: $15,000), New Zealand Rugby Foundation Inc. $300,000 (: $300,000), New Zealand Schools Rugby Council $295,000 (: $115,000), New Zealand Universities $17,500 (: $17,500), Rugby Museum Society of New Zealand Inc. $65,000 (: $35,000), New Zealand Marist Rugby Football Federation $3,000 (: $3,730). FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER ASSOCIATES SANZAR Pty Limited The Group had transactions of $1,328,000 with SANZAR Pty Limited during the year ended 31 December (: $1,320,000). The Group had a receivable from SANZAR Pty Limited totalling $1,546,000 as at 31 December (: $11,000). SANZAR Europe s.a.r.l. The Group earned interest income of $41,000 (: $107,000) from SANZAR Europe s.a.r.l. during the year as a result of loans provided to the associate to purchase broadcasting rights which have been sold into the European markets. The Group had a loan receivable from SANZAR Europe s.a.r.l totalling $52,647 as at 31 December (: $2,407,000). DIRECTORS W. W. Peters is a director of Aotearoa Fisheries Limited and New Zealand Rugby Foundation Inc. The Group received commercial income from Aotearoa Fisheries Limited and paid grants to New Zealand Rugby Foundation Inc. G. J. Cooney is a director of New Zealand Racing Board. The Group received royalties on sports betting from the New Zealand Racing Board. P. N. Kean is Chairman of BNZ Partners Programme for the Otago/Southland region. The Group received commercial income from Bank of New Zealand. EMPLOYEES S. J. Tew is a director of New Zealand Rugby Travel Limited trading as All Blacks Tours. The Group received royalties on rugby tour packages sold. 29 COMMITMENTS In December 2008 the NZRU entered into certain Forward Foreign Exchange Contracts to hedge a percentage of known and contracted future cash flows for a period of up to eleven years. The banking facility covenant requires that if at any time the aggregate of the mark-to-market values (expressed in New Zealand dollars) of all foreign exchange and interest rate transactions exceeds an out of the money position for the NZRU of $20 million, the NZRU must transfer title of cash or securities of an amount at least equal to the difference between the actual NZRU out of the money position and $20 million. The mark-to-market value of these specific Forward Foreign Exchange Contracts at 31 December is in-the-money by $19.2 million (: $23.1 million). 30 CONTINGENT ASSETS NZRU s share of compensation from World Rugby for the truncation of the Investec Rugby Championship has not yet been finalised. NZRU has conservatively estimated the amount of compensation due at balance date. There may be further income recognised in 2016 as a result of the conclusion of these discussions. 31 SUBSEQUENT EVENTS No subsequent event has occurred since balance date that would materially impact the financial statements as at 31 December.

75 NEW ZEALAND RUGBY ANNUAL REPORT 75 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF THE NEW ZEALAND RUGBY UNION INCORPORATED REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS We have audited the accompanying consolidated financial statements of the New Zealand Rugby Union and group (the NZRU ) on pages 44 to 74, which comprise the consolidated and separate balance sheets as at 31 December, and statements of comprehensive income, statements of changes in equity, and cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory information. This report is made solely to the NZRU s members, as a body. Our audit has been undertaken so that we might state to the NZRU s members those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the NZRU s members as a body, for our audit work, for this report, or for the opinions we have formed. BOARD OF DIRECTORS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Board of Directors are responsible for the preparation and fair presentation of these consolidated financial statements, in accordance with generally accepted accounting practice in New Zealand, and for such internal control as the Board of Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR S RESPONSIBILITIES Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates, as well as the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditor and the provision of agreed upon procedures relating to test match reviews, we have no relationship with or interests in the NZRU. These services have not impaired our independence as auditor of the NZRU. OPINION In our opinion, the consolidated financial statements on pages 44 to 74 present fairly, in all material respects, the financial position of the New Zealand Rugby Union and group as at 31 December, and their financial performance and cash flows for the year then ended in accordance with generally accepted accounting practice in New Zealand. Chartered Accountants 25 February 2016, Wellington, New Zealand This audit report relates to the financial statements of the New Zealand Rugby Union and group (the NZRU ) for the year ended 31 December included on the NZRU s website. The NZRU s Board of Directors are responsible for the maintenance and integrity of the NZRU s website. We have not been engaged to report on the integrity of the NZRU s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 25 February 2016 to confirm the information included in the audited financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

76 NEW ZEALAND RUGBY ANNUAL REPORT 76 THANK YOU AND GOOD LUCK At Rugby World Cup there were a number of All Blacks who played for the team for the last time. Among them were five centurions, the most-capped All Black ever, the All Blacks top points scorer ever and other record-holders. New Zealand Rugby would like to pay tribute to all those All Blacks who have variously retired from rugby or chosen to continue their professional careers offshore. They have all given incredible service to the black jersey and New Zealand. Their contribution to the All Blacks legacy as well as the respect and affection with which the team is regarded, is significant. They will always be part of a very special group and we wish them all the best for their future endeavours. In particular, we would like to thank the six most-experienced members of the All Blacks RWC squad. Richie McCaw, All Black 1014, 148 Tests, Most capped international player Most capped All Black Most international Test match wins Most international Test matches and Test match wins as Captain New Zealand Player of the Year 2003, 2006, 2012 International Player of the Year 2006, 2009, 2010 Daniel Carter, All Black 1034, 112 Tests, Most international Test points (includes records for most conversions and penalty goals) Most All Blacks Test points Most All Blacks Test starts at first five-eighth New Zealand Player of the Year 2004, 2005 International Player of the Year 2005, 2012, Keven Mealamu, All Black 1026,133 Tests, Most All Blacks Tests at hooker Most first class games by a New Zealand player Ma a Nonu, All Black 1031, 104 Tests, Most Tests as midfield partnership (with Conrad Smith) Most All Blacks Test starts at second five-eighth New Zealand Player of the Year Conrad Smith, All Black 1044, 94 Tests, Most Tests as midfield partnership (with Ma a Nonu) Most All Blacks Test starts at centre Tony Woodcock, All Black 1029, 118 Tests, Most All Blacks Test starts at prop

77 These men have all made invaluable contributions to their local communities, provinces and country, on and off the field. Thank you. ALL BLACKS LEGENDS.

78 NEW ZEALAND PROVINCIAL UNIONS WAIKATO RU COUNTIES MANUKAU RFU NORTH HARBOUR RU NORTHLAND RU AUCKLAND RU THAMES VALLEY RFU UNION UNION TARANAKI RFU KING COUNTRY RFU BAY OF PLENTY RU EAST COAST RFU POVERTY BAY RFU HAWKE S BAY RFU TASMAN RU HOROWHENUA KAPITI RFU WANGANUI RFU MANAWATU RU WAIRARAPA BUSH RFU WELLINGTON RFU WEST COAST RFU BULLER RU RUGBY SOUTHLAND Published by New Zealand Rugby Union Inc. Wellington Auckland Ph: Ph: PO Box 2172 PO Box 2453 Wellington 6140 Shortland Street NI GB RU Y ON CA MID NTERBURY U CANTERBURY RFU MID CANTERBURY RU NORTH OTAGO RFU OTAGO RFU nzrugby.co.nz allblacks.com communityrugby.co.nz facebook/allblacks twitter.com/allblacks plus.google.com/+allblacks YouTube.com/allblacks SOUTH CANTERBURY RFU